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Stock Prices Advance, Dollar Slips

October 17, 1991

TOKYO (AP) _ Share prices on the Tokyo Stock Exchange rose in moderate trading Thursday morning, boosted by a record-high closing on Wall Street. The dollar slipped against the yen.

The 225-issue Nikkei Stock Average gained 190.15 points, or 0.78 percent, closing the morning session at 24,524.82. The index was up about 210 points early in the afternoon session.

On Wednesday, the index rose 27.02 points, or 0.11 percent.

The Tokyo Stock Price Index of all issues listed in the first section stood at 1,859.75 points at the end of morning trading, up 9.70 points, or 0.52 percent, from Wednesday’s finish.

At late morning, the dollar was changing hands at 129.67 yen, down 0.35 yen from Wednesday’s close. It opened at 130.05 yen after finishing overnight in New York at 130.10 yen, unchanged from Tuesday.

By late morning, benchmark No. 129 10-year Japanese government bonds were selling for 103.18 points, up from Wednesday’s close of 102.80 points. Their yield fell to 5.835 percent from 5.900 percent.

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

The Dow Jones industrial average of 30 industrials closed up 20.35 points at 3,061.72, surpassing its previous record closing of 3,055.23, set Aug. 28.

Nomura, Nikko, Daiwa and Yamaichi Securities on Tuesday began a government- imposed one-to-three-week suspension of operations in their corporate divisions for compensating favored clients for investment losses.

Under a Finance Ministry order, Nomura, the world’s biggest brokerage, also has stopped stock trading at more than half of its 153 domestic branches for periods up to six weeks for excessive promotion of shares of Tokyu Corp., a railroad conglomerate based in Tokyo.

Currency dealers said investors were waiting for the release later in the day of fresh U.S. economic figures. The U.S. government was scheduled to report on consumer prices and industrial production, both for September. Merchandise trade figures for July also were to be announced.

Indications the U.S. economy has not recovered may cause the Federal Reserve to lower interest rates, traders said.

″The dollar appears to be becoming bearish in anticipation of economic figures that may spur a Fed move to cut its interest rates,″ said Takeo Suzuki, a dealer with Yasuda Trust and Banking.

″Many people are saying it is surprising an interest rate cut hasn’t come sooner,″ said Kenji Kubota, a foreign exchange dealer at Manufacturers Hanover Securities Co.

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