Tokyo Stocks Open Mixed
Jun. 16, 1999
TOKYO (AP) _ The dollar was higher against the yen in early trading Wednesday amid efforts by Japanese finance officials to stem the rapid rise of the yen. Tokyo stock prices were mixed.
The dollar traded at 120.48 yen, up 0.14 yen from late in Tokyo on Tuesday and also above its late New York level of 120.40 yen overnight.
The benchmark 225-issue Nikkei Stock Average fell 11.50 points, or 0.07 percent, to 17,270.50 in the first 30 minutes of trading. On Tuesday, the average gained 93.18 points, or 0.54 percent.
In currency trading, the dollar was moving in a narrow range as the market awaited clues as to whether the U.S. Federal Reserve would move to raise interest rates.
With growing sentiment that the Japanese economy is poised for a recovery, as well as anticipation that the Fed will tighten monetary policy, market participants are generally inclined to be yen-bullish, dealers said.
However, the strong message from the Bank of Japan and other financial authorities that Japan will prevent excessive yen strength is giving the greenback support, they said.
On the stock market, trading was quiet ahead of the release of key U.S. economic data later in the day, but analysts said sentiment remains positive on hopes for a recovery in Japan's economy.
Players were awaiting the release Wednesday of the the May U.S. consumer price index, which is expected to have a big influence on the U.S. Federal Reserve's next monetary policy move.
The broader Tokyo Stock Price Index of all issues listed on the first section was up 1.30 points, or 0.09 percent, to 1,386.37. The TOPIX closed up 3.80 points, or 0.28 percent Tuesday.
In New York overnight, the Dow Jones industrial average gained 31.66 points, or 0.3 percent, to close at 10,594.99.
In other currencies, the euro was traded at 125.70 yen, up from 125.04 yen yen late Tuesday in Tokyo.
The benchmark No. 213 10-year 10-year Japanese government bond was unquoted early Wednesday. On Tuesday, its yield dropped to 1.5950 percent, driving it's price up to 98.31.