Dollar Higher in Tokyo, Stocks Rise
TOKYO (AP) _ Share prices on the Tokyo Stock Exchange climbed in active trading today, led by rising futures prices and energy-related stocks. The dollar was higher against the Japanese yen.
Prices rose on buying by domestic investors following the special quotation for the settlement of September futures and options contracts at the start of the day’s trading.
Traders said many positions were rolled over to new contracts, and the special quotation had less impact on the market than expected.
Shoko Taniguchi, an analyst with Yamaichi Securities, said oil and other energy-related issues advanced almost across the board in the light of the continued confrontation between the United States and Iraq.
An overnight rise on Wall Street was a ``psychologically positive factor″ to investors in Tokyo, Taniguchi said.
Other gainers included major electronic issues, high technology issues and real estate issues.
The 225-issue Nikkei Stock Average gained 398.71 points, or 1.95 percent, closing at 20,842.64 points. On Thursday, the index had lost 127.11 points, or 0.62 percent.
The Tokyo Stock Price Index of all issues listed on the first section was up 21.41 points, or 1.38 percent, to 1,575.75. It had slipped 4.81 points, or 0.31 percent, the day before.
An estimated 705 million shares changed hands on the first section, much of which was related to the special quotation. Thursday’s turnover totaled 312 million shares.
Advancing issues overwhelmed decliners 906 to 207, with 138 issues unchanged.
Following the release of Japan’s gross domestic product data in the afternoon, the dollar came under slight selling pressure against the yen.
But the dollar quickly bounced back after falling to around the 110-yen level.
The dollar’s recent strength is based on the perception that the Federal Reserve may raise interest rates to ward off inflationary pressure.
Japan’s Economic Planning Agency said the nation’s GDP contracted 0.7 percent in the April-June period from the previous quarter, for an annualized rate of minus 2.9 percent growth.
The dollar was changing hands at 110.32 yen, up 0.27 yen from late Thursday in Tokyo and also higher than its late New York level overnight of 110.20 yen. It ranged between 109.98 yen and 110.34 yen in today’s session.
The benchmark No. 182 10-year Japanese government bond closed at 100.71 yen, up from Thursday’s finish of 100.53 yen. Its yield, which moves in the opposite direction, fell to 2.900 percent from 2.925 percent.
Financial markets in Japan will be closed Monday, Sept. 16, for a national holiday.