Dollar Mixed, Stocks Fall After Four-Day Rise
Oct. 09, 1995
TOKYO (AP) _ The dollar was little changed today against the Japanese yen following a weekend pledge by major industrialized nations to support a stronger dollar. Prices fell on the Tokyo Stock Exchange, ending a four-session advance.
Stock and other financial markets will be closed Tuesday in Japan for Sports Day, a national holiday.
By late afternoon today in Tokyo, the dollar was trading at 100.32 yen, up 0.04 yen from late Friday in Tokyo but below its late level in New York of 100.53 yen.
The market reacted positively early in the session to Saturday's agreement among officials from the Group of Seven industrial nations to support the dollar's ``orderly reversal.''
The dollar rose as high as 101.40 yen during the session in Tokyo.
But it fell later as the Bank of Japan failed to buy dollars in the open market.
Yosuke Seike, a dealer with Dai-Ichi Kangyo Bank, said market players had expected intervention by the Bank of Japan following the G-7 meeting.
However, ``the market's overall sentiment will be for a strong dollar on a long-term basis,'' Seike said.
The G-7 includes the United States, Japan, Britain, Germany, France, Italy and Canada.
Meanwhile, the 225-issue Nikkei Stock Average shed 330.01 points, or 1.78 percent, closing at 18,176.27 points. Before today's decline, the average had gained a total of 766.44 points, including a 285.87-point rise on Friday, in the previous four trading days.
The Tokyo Stock Price Index of all issues listed on the first section fell 15.27 points, or 1.04 percent, to 1,453.04. The TOPIX rose 11.98 points, or 0.82 percent, on Friday.
An estimated 250 million shares changed hands on the first section, down from Friday's 381 million shares. Declining issues outnumbered advancers 660 to 366, with 160 issues unchanged.
Losers included real estate issues, pharmaceutical and banking stocks, including Daiwa Bank, which was rocked by a $1.1 billion loss from unauthorized bond trading at its New York branch.
Daiwa Bank President Akira Fujita resigned today to take responsibility for the loss. Daiwa fell 39 yen to close the day at 682 yen per share.
Benchmark No. 174 10-year Japanese government bonds closed at 113.61 yen, up 0.20 yen from Friday's close. Their yield fell to 2.705 percent from 2.730 percent.