Tokyo Share Prices Higher
Oct. 06, 1999
TOKYO (AP) _ The dollar rose against the yen today, reversing earlier losses on warnings from the U.S. Federal Reserve about further interest rate increases. Tokyo share prices rose moderately.
The dollar bought 107.36 yen at 5 p.m. (4 a.m. EDT), up 0.76 yen from its level of 106.60 yen late Tuesday in Tokyo and also above its level of 106.41 yen overnight in New York. During the day, it ranged from 105.98 yen to 107.51 yen.
The benchmark 225-issue Nikkei Stock Average rose 112.27 points, or 0.63 percent, to close at 17,896.42. The average closed up 20.44 points, or 0.12 percent, the previous day.
In currency trading, the dollar initially fell then shot back up later in the day.
The dollar fell after the Fed said it may increase rates, warning that it would remain ``especially alert'' to inflation threats from tight labor markets, traders said. But the dollar was later bought back.
``Japanese investors bought the dollar through a U.S. bank. The dollar's bullish trend might be extended,'' said Takeo Okabe, a senior trader at Daiwa Bank.
In other currencies, the euro bought 115.28 yen, up 1.38 yen from its level of 113.90 yen late Tuesday.
On the stock market, speculation about the Japanese government's economic boosting package helped lift share prices somewhat.
Prime Minister Keizo Obuchi reshuffled his Cabinet on Tuesday and kicked off a three party coalition government, retaining economic ministers who have played a key role in bringing the economy to the verge of recovery.
Shizuka Kamei, the policy chief of the ruling party, said he expects the government's new stimulus package to include 13 trillion yen ($121 billion) in total spending.
That was slightly more than the market had expected but still perceived mainly as a defensive measure to keep the recovery going.
``The size itself is moderate,'' said Kazunori Jinnai, deputy general manager of equities at Daiwa Securities SB Capital Markets.
``The stimulus package is to counter any possibility of a slowdown in economic recovery,'' said said Hidenori Karaki, general manager of equities at Tokyo Mitsubishi Personal Securities.
The broader Tokyo Stock Price Index of all issues listed on the first section climbed 2.47 points, or 0.16 percent, to 1,512.53. The TOPIX closed down 5.92 points, or 0.39 percent, the previous day.
Volume on the first section of the Tokyo Stock Exchange was estimated at 490.87 million shares, up from 461.75 million shares Tuesday. Retreating issues out numbered advancers 731 to 443, while 149 issues were unchanged.
The yield on the benchmark 10-year Japanese government bond rose to 1.7050 percent from Tuesday's finish of 1.6100 percent. Its price fell 0.83 point to 99.95.