Stocks Regain Footing, Dollar Weak
TOKYO (AP) _ Tokyo share prices recovered Thursday morning, one day after sinking to their lowest intra-day level of the year. The dollar slipped against the Japanese yen.
The 225-issue Nikkei Stock Average closed the morning session up 483.79 points, or 2.25 percent, to 21,986.69 points.
On Wednesday the average plummeted nearly 800 points on continued arbitrage-linked selling before bouncing back to finish the day down 450.16 points, or 2.05 percent.
The dollar was changing hands at 129.05 yen at mid-morning, down 0.33 yen from Wednesday’s close and below its overnight close in New York at 129.35 yen.
The benchmark No. 129 10-year Japanese government bonds rose to 104.33 points around midday from Wednesday’s 104.21-point finish. Their yield fell to 5.630 percent from 5.650 percent.
Thursday’s early stock rebound came after five straight trading days of decline and was supported by an overnight gain on Wall Street and rising domestic bond rices. Traders were also relieved by a late afternoon recovery Wednesday that narrowed earlier losses.
But dealers warned that the index was gaining on very thin volume and continued to be influenced by technical trading.
″The market feels very fragile,″ said Oliver Eberstadt of Dresdner Securities.
Stocks have wavered this week as traders unwind abritrage positions before the Friday deadline of December special quotations. In addition, worries about Japan’s economy were exacerbated by the release Tuesday of a worse-than- expected central bank report on business sentiment.
″There’s not too much reason to be hugely enthused,″ said Paul Migliorato, a dealer with Jardine Fleming. A series of very pessimistic earnings forecasts by major companies has scared away many investors, he said.
The dollar opened lower on weakness carried over from New York, where it fell against European currencies amid ebbing concerns over the crisis in the Soviet Union.
But dollar trading remained quiet in Tokyo as dealers awaited the release later Thursday of the U.S. producer price index and retail sales figures for November.