Dollar Falls, Stocks Edge Up
TOKYO (AP) _ The dollar ended lower against the Japanese yen on Thursday, while share prices rose moderately.
The dollar closed at 125.40 yen, unchanged from its opening, and down 0.71 yen from Wednesday’s finish. The currency ranged between 125.22 yen and 125.55 yen.
The 225-issue Nikkei Stock Average rose 168.55 points, or 0.77 percent, ending the day at 22,104.92. On Wednesday, the Nikkei fell 63.23 points, or 0.29 percent, closing at 21,936.37.
The Tokyo Stock Price Index of all issues listed on the first section gained 5.20 points, or 0.32 percent, closing at 1,631.25. TOPIX shed 2.81 points, or 0.17 percent, the previous day.
The benchmark No. 129 10-year Japanese government bonds stood at 105.62 points, up from Wednesday’s 105.18 finish. Their yield was lower at 5.400 percent from 5.475 percent.
Currency dealers said the dollar remained weaker after its lower opening mainly because of its overnight fall in New York on profit-taking.
″Trading is very thin,″ Akihiro Fukutome, a dealer for Mitsui Taiyo Kobe Bank. He said many market players stayed on the sidelines waiting for the release of U.S. January unemployment figures.
The jobless figure is considered a key influence on the U.S. Federal Reserve Board’s monetary policy.
Expectations for a further cut in the U.S. discount rate were also growing among Japanese players, prompting them to avoid buying the dollar, Fukutome said.
On the stock exchange, prices rose on index-linked buying and gains made by small- and mid-size capital shares, traders said.
A Wako Securities Co. trader said investors were regaining confidence that the market has already bottomed out, but he added that an increase in trading volume would be needed for a further advance.