Stocks Rebound, Dollar Slightly Lower
Mar. 14, 1996
TOKYO (AP) _ Prices on the Tokyo Stock Exchange rebounded today from the previous day's decline while the dollar edged lower against the Japanese yen.
The Nikkei Stock Average rose 188.96 points, or 0.96 percent, closing at 19,923.66. On Wednesday, the index had lost 215.57 points, or 1.08 percent, tumbling to its lowest closing level for the year.
Arbitrage buying triggered by higher futures prices and buying by public pension funds helped push the index higher, traders said, amid some market optimism that the major opposition party may be moving to compromise with the ruling coalition on the nation's budget.
Opposition New Frontier Party members have been boycotting parliamentary budget committee deliberations for nearly two weeks over a government plan to use taxpayer money to bail out bankrupt housing lenders.
Volume on the First Section of the Tokyo Stock Exchange was estimated at 350 million shares, down from 428.68 million Wednesday.
Advances outnumbered declines 548 to 458, while 25 issues remained unchanged.
The Tokyo Stock Price Index of all issues listed on the first section was up 9.77 points, or 0.64 percent, closing at 1,533.89. It had fallen 11.63 points, or 0.76 percent, the previous day.
In the currency market, the dollar was changing hands in late afternoon at 105.28 yen, down 0.03 yen from its late Tokyo level Wednesday but above its late New York level overnight of 105.10 yen.
Trades ranged between 105.15 yen and 105.34 yen today in Tokyo.
Exporters were selling dollars, while other players were buying in case of Bank of Japan moves to support the U.S. currency, traders said.
But market activity was quiet overall ahead of a key German central bank policy meeting later today, said Shuji Takano, a dealer at ABN-AMRO Bank in Tokyo.
Currency market players were waiting to see if the Bundesbank would cut its interest rates at the meeting, Takano said.
The benchmark No. 182 10-year Japanese government bonds closed at 98.94 yen, up from Wednesday's 98.36-yen close. Their yield declined to 3.145 percent from 3.225 percent Wednesday.