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Stocks Rise for Third Day, Dollar Slips

October 17, 1991

TOKYO (AP) _ Tokyo share prices, buoyed by Wall Street gains, rose in relatively active trading for the third consecutive day today, while the dollar fell against the Japanese yen.

The 225-issue Nikkei Stock Average rose 105.18 points, or 0.43 percent, closing at 24,439.85. The average now has gained a total of 579.18 points in three days.

The Tokyo Stock Price Index of all issues listed on the first section closed at 1,858.58 points, up 8.53 points, or 0.46 percent, from Wednesday’s close.

Volume on the first section was estimated at 450 million shares, up from Wednesday’s 356 million. Advancing issues outnumbered declines 609 to 341, with 170 unchanged.

″A record-breaking finish on Wall Street (Wednesday) helped provide a sense of confidence in buying for investors here,″ said Kazuhiko Hatakeyama, a trader with Cosmo Securities.

The Dow Jones Industrial Average closed up 20.35 points at 3,061.72, surpassing its previous record closing of 3,055.23, set Aug. 28.

At the end of morning trading in Tokyo, the Nikkei average was up 190.15 points, but fell back on profit-taking in the afternoon.

Masaru Yamano, head of the stock department at Taiheiyo Securities, said another main factor boosting the Nikkei average was active arbitrage buying to seek profits from price gaps between the spot and futures markets.

Also supporting the market were the yen’s renewed strength against the dollar and declining domestic interest rates, he said.

The dollar closed at 129.53 yen in Tokyo, down 0.49 yen from Wednesday’s close and below its overnight finish of 130.10 yen in New York.

After opening at 130.05 yen, its high for the day, it ranged as low as 129.40 yen. Spot trading totaled $8.51 billion, up from Wednesday’s $4.04 billion.

Traders said the dollar was pressed down as the yen strengthened against the German mark.

″Market players spent the day mainly in position adjustments as there were few customers today,″ said Masaaki Yamada, a dealer with Citibank.

Currency dealers said investors were awaiting the release later Thursday of September U.S. economic figures, including consumer prices and industrial production. Merchandise trade figures for July also were to be announced.

Indications that the U.S. economy has not recovered may cause the U.S. Federal Reserve Board to lower interest rates, traders said. Lower American interest rates make the dollar less attractive to investors.

The benchmark No. 129 10-year Japanese government bonds closed at 103.32 points, up from Wednesday’s 102.80-point finish. Their yield fell to 5.810 percent from 5.900 percent.

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