Dollar Down, Stocks Climb
TOKYO (AP) _ The dollar slipped against the Japanese yen in Tokyo today, while stock prices rose slightly on the Tokyo Stock Exchange.
The dollar opened at 126.55 yen and stayed in a range of 126.20-126.75 yen in lackluster trading. The currency finished the day’s trading at 126.40 yen, down 0.75 yen from Thursday’s close of 127.15 yen.
On the Tokyo Stock Exchange, the Nikkei Stock Average of 225 selected issues gained 10.87 points, or 0.04 percent, to close at 27,401.42.
Dealers said the bearish dollar in Tokyo reflected the currency’s poor showing in New York and London overnight.
The decline in oil prices and doubt over the Organization of Petroleum Exporting Countries’ ability to agree on production limits also added to the dollar’s downward trend, dealers said.
″There were not many negative incentives in Tokyo today,″ said Yoshikazu Kotooge of Yasuda Trust Bank. ″The slight decline after opening was due to heavy sales of the dollar by securities and trust firms.″
Dealers said they expect the dollar will remain at 126-yen level because it was being bought back in the low 126′s.
Securities dealers attributed the strong performance of shares on the Tokyo Stock Exchange to the 43.92-point gain in the Dow Jones industrial average in New York overnight and the sense of relief felt by market participants after the first anniversary of the worldwide market crash on Oct. 19, 1987.
″The market finally got rid of the pressure after the crash anniversary passed peacefully,″ said Mike Morizumi of Merrill Lynch in Tokyo.
Dealers also said the Japanese parliamentary debate on a new capital-gain tax and a widening stock scandal involving politicians’ purchases of unlisted stocks is pulling share prices.
They also said uncertainty caused by Emperor Hirohito’s illness was still hurting the market.
″Investors always hate uncertainties and stay away from them,″ said Merrill Lynch’s Jeff Bahrenburg.