Tokyo Stocks Rise in Early Trading
TOKYO (AP) _ The dollar rose against the yen early Monday amid receding fears about inflation in the United States. Japanese stocks gained sharply.
The dollar bought 106.52 yen, up 0.66 yen from late Friday in Tokyo and also above its late New York level of 106.08 yen on Friday.
The benchmark 225-issue Nikkei Stock Average rose 247.13 points, or 1.33 percent, to 18,817.97 points in the first 30 minutes of trading. On Friday, the average closed up 38.03 points, or 0.21 percent.
In currency dealings, the dollar’s strength came from last week’s interest rate hike by the Federal Reserve and stability on Wall Street.
Last Tuesday, the Fed’s policy-makers boosted interest rates by a quarter of a point to contain inflationary pressure.
Early in the Asian session Monday, the dollar moved as high as 106.60 yen at one point on bids from Japanese bank dealers as well as some U.S. funds. The currency then shed some of its gains.
Traders said bullish sentiment on the dollar will remain for a while.
In other currencies, the euro was traded at 109.55 yen, up from 109.22 yen late Friday in Tokyo.
On the stock market, prices opened sharply higher Monday, led by high-tech and communications-related issues.
Players said that the dollar’s strength against the Japanese currency and gains on stock markets worldwide were supporting investor confidence in Tokyo.
In New York, the Dow Jones industrial average fell 31.81 points to close at 11,003.89 at Friday’s close.
The broader Tokyo Stock Price Index of all issues listed on the first section was up 16.67 points, or 1.01 percent, to 1,659.34 points. The TOPIX closed up 20.62 points, or 1.27 percent, on Friday.
The yield on the benchmark 10-year Japanese government bond rose to 1.8650 percent from Friday’s finish of 1.8500 percent. Its price fell 0.13 point to 99.44.