Dollar, Stocks Finish Higher
TOKYO (AP) _ The dollar finished higher against the Japanese yen Thursday, while share prices rebounded on the Tokyo Stock Exchange.
The dollar finished at 117.15 yen, up 1.22 yen from Wednesday’s close but lower than its overnight New York finish at 117.63 yen. After opening at 117.25 yen, it ranged between 116.90 yen and 117.37 yen.
Traders said the dollar edged lower from its higher opening after it rose against the yen in overnight London and New York trading after traders took profits from the Japanese currency’s all-time high of 115.10 yen.
Takao Tashiro, a dealer with Tokai Bank, said there was some small-lot dollar buying just above the 117-yen level in Tokyo, but the market lacked incentive to push it higher.
Before Wednesday’s rebound, the dollar had lost a total of 2.85 yen in six trading days and 9.65 yen since Feb. 2.
Meanwhile, the 225-issue Nikkei Stock Average gained 314.23 points, or 1.70 percent, closing at 18,764.92. On Wednesday the average was down 40.93 points, or 0.22 percent.
Keiji Arai, an analyst at Sanyo Securities, said rising futures prices accelerated the Nikkei’s advance. He said the gains were partly due to the halt in the recent yen’s rise against the dollar.
Arbitrage buying and buying by foreign investors - both of which have been widespread since early this month - supported the market, Arai said. In arbitrage trading, investors seek profits from price gaps between the spot and futures markets.
The Tokyo price index of all issues listed on the first section was up 18.59 points, or 1.33 percent, to 1,414.02. The TOPIX fell 2.48 points, or 0.17 percent, the day before.
An estimated 470 million shares changed hands on the first section, up from Wednesday’s 356 million shares. Advancing issues outnumbered declines 785 to 258, with 127 unchanged.
The benchmark No. 145 10-year Japanese government bond price fell to 108.81 points from Wednesday’s 109.38-point finish. Their yield stood higher at 4.150 percent from 4.070 percent.