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Tokyo Stocks Rise Sharply

February 2, 1998

TOKYO (AP) _ Tokyo stocks rose sharply early Monday on growing hopes for additional government measures to support the lagging economy. The U.S. dollar traded lower against the Japanese yen.

The benchmark Nikkei Stock Average of 225 selected issues rose 222.18 points, or 1.34 percent, to 16,850.65 in the first 30 minutes of trading. On Friday, the index lost 386.12 points, or 2.27 percent.

The broader Tokyo Stock Price Index of all issues listed on the first section was up 3.86 points, or 0.30 percent, to 1,271.37. The TOPIX sank 17.08 pints, or 1.33 percent, Friday.

Traders said the market is rallying on news that Hiromu Nonaka, the ruling Liberal Democratic Party’s acting secretary-general, said Saturday the government should draw up a 6 trillion yen ($47.4 billion) extra budget for next fiscal year focusing on information-related services to aid the economy.

Growing expectations for the stimulus measures sent the dollar lower as investors sold it for the yen, traders said.

The currency bought 126.64 yen at 9 a.m., down 0.70 yen from its level of 127.34 yen late Friday in Tokyo and also below its New York level of 126.85 yen late Friday.

But the dollar’s fall was limited because Japanese importers stepped in to buy the U.S. currency whenever it weakened.

The yield on the benchmark No. 182 10-year Japanese government bond was quoted at 1.765 percent, unchanged from Friday’s finish, leaving its price unchanged at 108.29 yen.

Update hourly