Japanese Stocks Rise
Mar. 22, 2000
TOKYO (AP) _ The dollar was higher against the yen Wednesday morning after the U.S. Federal Reserve raised interest rates. The Tokyo stock market's main index rose moderately.
The dollar bought 106.71 yen at late morning, up 0.23 yen from late Tuesday in Tokyo but below its late New York level of 106.93 yen.
The benchmark 225-issue Nikkei Stock Average gained 56.63 points, or 0.29 percent, to 19,658.99 at the end of the morning session. On Tuesday, the average closed up 36.04 points, or 0.18 percent.
The Federal Reserve raised a key interest rate Tuesday by a quarter point _ the fifth increase since June _ in a preemptive measure to contain any budding inflationary pressure in the United States.
Higher interest rates tend to make a country's currency more attractive to investors.
In other currencies, the euro was traded at 102.55 yen, down from 103.52 yen late Tuesday in Tokyo.
The Fed action met Wall Street's expectations of a modest increase in interest rates, a move that convinced investors the central bank was winning its battle to prevent inflation.
On the stock market, prices opened higher following a rally in New York. But players in Tokyo said active selling of Internet-related and high-tech issues was limiting the positive effects of the surge on Wall Street.
Kazunori Jinnai, a senior equity division manager at Daiwa SB Capital Markets, said investors were seeking to take profits in information technology issues following the recent recovery in that sector.
In New York, the Dow Jones industrial average rose 227.10 points to 10,907.34 at Tuesday's close.
The broader Tokyo Stock Price Index of all issues listed on the first section was down 16.08 points, or 0.99 percent, to 1,656.47. The TOPIX closed down 1.67 points, or 0.10 percent, the day before.
The yield on the benchmark 10-year Japanese government bond rose to 1.8800 percent from Tuesday's finish of 1.8650 percent. Its price fell 0.13 point to 99.32.