Asia Markets: Japan Shares Hit 13-Mo High
Tue August 26, 2003 11:22 PM ET
By Raju Gopalakrishnan
SINGAPORE (Reuters) - Tokyo shares rose to a 13-month high on Wednesday on hopes of an economic recovery in Japan but the yen, which has also strengthened considerably in recent weeks, was curbed by fears of intervention.
Other Asian stock markets were mostly stronger, tracking a higher close on Wall Street, while gold prices eased slightly after a strong run-up in New York.
Crude oil prices held steady and the dollar was little changed against the yen and the euro.
The main Tokyo stocks index was up 0.36 percent at 10,370.06 points at midsession. It had risen as high as 10,405.62, marking a new 13-month intraday high, on strength in banks, Toyota Motor Corp, Shin-Etsu Chemical Co and other exporters.
"Basically, the market continues to rise on hopes for stronger economic growth. That's still lifting cyclical shares," said Norihiro Fujito, a senior strategist at Mitsubishi Securities.
"But the technicals say the Nikkei will struggle to rally further from here. I don't expect a lot more upside," he said.
Markets in Australia, Hong Kong, Singapore, Malaysia, Taiwan and Korea were higher but those in Indonesia and the Philippines were flat.
The yen shied away from five-month highs against the euro and one-month highs against the dollar set earlier in the week amid mounting caution against possible intervention by Japanese authorities.
"At these levels, I think you can't deny that the market is becoming cautious about intervention," said Mitsuru Saito, chief economist at UFJ Tsubasa Securities.
"There may be some speculation that the Japan authorities cannot be aggressive ahead of U.S. Treasury Secretary (John) Snow's visit here (next week), but I don't think it matters, particularly as levels like 117 yen and 115 yen are key defense lines."
The dollar was trading at around 117.50 yen at 10:40 p.m. EDT Tuesday, up marginally on the day and slightly above one-month lows near 117 set earlier this week. The yen has strengthened from around 119 to the dollar since Japan announced surprisingly strong second-quarter GDP numbers on August 12.
The euro bounced toward 127.60 yen, up about a quarter of a yen from late New York levels and up nearly a yen from Tuesday's five-month lows. The euro was trading at $1.0860/65, little changed on the day but within a cent of Tuesday's four-month lows.
Gold dipped as the dollar rose, with spot trades last at $363.75/4.50 to the ounce against $364.75/5.50 in late New York. Rising political tensions in the Middle East had driven prices of the safe-haven metal up from the $361 level on Tuesday. |
