Stock Prices Fall Back, Dollar Finishes Higher
TOKYO (AP) _ Share prices on the Tokyo Stock Exchange closed moderately lower Tuesday, while the dollar edged higher against the Japanese yen.
The 225-issue Nikkei Stock Average fell 73.26 points, or 0.31 percent, closing at 23,326.86. On Monday, the average dropped 699.06 points, or 2.90 percent, following the fifth-largest ever plunge in the Dow Jones industrial average Friday.
The Tokyo Stock Price Index of all issues listed on the first section closed at 1,773.60, up 2.95 points, or 0.16 percent, from Monday’s finish. The TOPIX shed 41.52 points, or 2.3 percent, the previous day.
The dollar closed at 129.48 yen, up 0.55 yen from Monday’s close but unchanged from its overnight finish in New York. After opening at 129.44 yen, it ranged between 129.40 yen and 129.57 yen.
As of 3 p.m., the benchmark No. 129 10-year Japanese government bonds fell to 103.04 points from Monday’s 103.13-point finish. Their yield rose to 5.855 percent from 5.840 percent.
Stock traders said share prices were broadly higher in the morning, aided by an overnight 29.52-point gain in the Dow Jones industrial average.
At the end of the morning session, the Nikkei average was up 240.79 points, but it turned weak in the afternoon amid renewed concern over Wall Street’s direction, traders said.
″A mood of investor confidence is returning to the market with the rebound on Wall Street,″ said Masunori Ishitobi of Sanyo Securities.
Osamu Kobayashi, an analyst with New Japan Securities, predicted the recovery in stocks would be rather slow as many investors remained cautious.
In currency trading, the dollar met some profit-taking in early morning but edged up later due to short-covering, said Yasushi Uehara, a dealer with Mitsui Trust and Banking.
″The dollar now seems to be taking a pause at the current level, but sentiment favoring it remains weak, considering the sagging U.S. economy,″ Uehara said.
Traders are watching for the monthly U.S. Commerce Department report on the nation’s trade balance, due out later in the day, he said.