TOKYO (AP) _ The Tokyo stock market’s main index rose moderately Wednesday morning, bouncing back after slumping to a fresh 18-year-low the day before. The dollar was higher against the yen.
The benchmark 225-issue Nikkei Stock Average gained 55.91 points, or 0.59 percent, to 9,531.51 at the end of morning trading. On Tuesday, the Nikkei shed 156.33 points, or 1.6 percent, closing at 9,475.60 _ its lowest finish since Dec. 15, 1983.
The dollar bought 133.75 yen in late morning trading, up 1.21 yen from late Tuesday in Tokyo but below its late New York level of 133.86 yen.
On the stock market, the Nikkei posted moderate gains with buying led by major technology issues and auto stocks after investors bought select shares in bargain hunting following Tuesday’s fall.
Tuesday’s drop came amid Japan’s grim economic outlook and Wall Street’s recent retreat.
Losers Wednesday morning included banking issues, which faced selling pressure after U.S. ratings agency Standard & Poor’s cut its credit ratings on seven major Japanese banks Tuesday, citing their massive bad loans, poor earnings, and dwindling capital
In New York, the Dow Jones industrial average lost 1.66 to 9,685.43 at Tuesday’s close. The Nasdaq composite index ended at 1,838.52, down 17.01.
The broader Tokyo Stock Price Index of all issues listed on the first section of the Tokyo Stock Exchange was up 3.70 points, or 0.40 percent, to 929.97 Wednesday morning. The TOPIX fell 17.24 points, or 1.83 percent, the day before.
In currencies, the dollar largely carried through its strength from overnight in New York, where the yen weakened on Tuesday’s stock market slide in Tokyo.
The euro was traded at 116.08 yen, up from 115.60 yen late Tuesday in Tokyo.
The yield on the benchmark 10-year Japanese government bond fell to 1.5250 percent from Tuesday’s finish of 1.5300 percent. Its price rose 0.04 point to 99.78.
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Tokyo Stock Exchange: http://www.tse.or.jp