Related topics

Japan Stocks Advance Moderately

December 8, 1998

TOKYO (AP) _ The dollar rose against the yen Tuesday morning amid continued optimism about the U.S. economy. Japanese stocks advanced moderately.

The dollar bought 120.34 yen at midday, up 1.38 yen from late Monday in Tokyo and also above its level of 119.81 yen in New York.

The Nikkei Stock Average gained 130.82 points, or 0.89 percent, to 14,854.31 points to close the morning session. On Monday, the average finished up 83.52 points, or 0.57 percent.

Traders bought the U.S. currency as a rise earlier on Wall Street boosted confidence among investors. The Dow Jones industrial average closed at 9,070.47 points on Monday, up 54.33.

On Friday, the U.S. Labor Department said the nation’s unemployment rate stood at a 28-year low. That data was helpful in diffusing increasing speculation the Federal Reserve would move to again ease interest rates in the near future.

A cut in rates would make the dollar-denominated currency less attractive to foreign investors because of lower yields.

Sentiment for the dollar was also bolstered after U.S. Treasury Secretary Robert Rubin denied a Japanese newspaper report that he planned to resign.

``There was some sort of report out ... but it was totally, absolutely, 100 percent erroneous,″ Rubin said Monday before delivering a speech in New York.

On the Tokyo Stock Exchange, share prices were boosted by the rise earlier on Wall Street, with export-oriented issues leading the way.

But traders remained cautious as they awaited more news on coalition plans between the ruling Liberal Democratic Party and Liberal Party, analysts said.

The broader Tokyo Stock Price Index of all issues listed on the exchange’s first section was up 7.07 points, or 0.63 percent, to 1,132.07. The TOPIX closed up 4.28 points, or 0.38 percent, the day before.

The yield on the 10-year Japanese government bond rose to 1.080 percent from Monday’s finish of 1.060 percent, driving its price down to 106.20 yen from 106.38 yen.

Update hourly