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Tokyo Stock Prices Rise

July 10, 2000

TOKYO (AP) _ Tokyo stocks closed higher Monday, lifted by Friday’s positive performance on Wall Street and an agreement over the weekend by the Group of Seven finance ministers to promote information technology. The U.S. dollar was lower against the yen.

The benchmark 225-issue Nikkei Stock Average rose 174.44 points, or 1.00 percent, to close at 17,572.68 points on the Tokyo Stock Exchange. On Friday, the average closed up 115.87 points, or 0.67 percent.

The dollar bought 106.94 yen on the Tokyo foreign exchange market at 3 p.m. (0600 GMT), down 0.70 yen from late Friday in Tokyo and also below its late New York level of 107.84 yen on Friday.

On the stock market, prices moved higher as buying centered on technology issues as investors were cheered by Friday’s Wall Street rally.

``Rallies by info-techs were mostly simple rebounds, triggered by the G-7 pledge to promote IT, and higher U.S. Nasdaq stocks,″ said Hidetoshi Kitajima, trader at Nippon Global Securities.

In New York, the Dow Jones industrial average rose 154.51 points to 10,635.98 at Friday’s close. The Nasdaq composite index ended at 4,023.20 points on Friday, up 62.63.

The broader Tokyo Stock Price Index of all issues listed on the first section rose 16.53 points, or 1.03 percent, to 1,613.89. The TOPIX closed up 6.73 points, or 0.42 percent, on Friday.

On the Tokyo Stock Exchange’s first section, 825 issues rose, with 424 issues falling and 148 closing unchanged from Friday.

Volume on the first section was estimated at 651.53 million shares, down from 735.03 million shares Friday.

In currency dealings, the dollar fell after core machinery orders in Japan rose a seasonally adjusted 4.5 percent in May from April to 940.65 billion yen (dlrs 8.8 billion), the first increase in five months, the Economic Planning Agency said Monday.

The rise was larger than expected by economists surveyed by Dow Jones, who estimated on average that orders increased 1.7 percent from the previous month.

Machinery orders are widely regarded as a leading indicator of corporate capital investment, and the May increase was another sign that the world’s second-largest economy is recovering from its decade-long slump.

Core machinery orders exclude those from electric power companies and those for ships, which are often a source of volatility in the overall data due to their large sizes.

In other currencies, the euro was traded at 101.92 yen, down from 102.24 yen late Friday in Tokyo.

The yield on the benchmark 10-year Japanese government bond rose to 1.7650 percent from Friday’s finish of 1.7550 percent. Its price fell 0.09 point to 99.43.

Update hourly