Nikkei Closes at 26-Month High
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Updated 2:03 AM ET November 10, 1999
TOKYO (Reuters) - Tokyo's benchmark Nikkei average scored its highest close in more than two years Wednesday, after jumping late in the day as buying in the futures market helped high-technology shares rebound from earlier profit-taking.
The Nikkei rose 275.71 yen or 1.51 percent to finish at 18,567.87. The December futures contract ended 330 yen higher at 18,590.
"Strong buying was seen in Osaka (futures), and the cash market followed suit in arbitrage trading," said Hirokuni Matsumoto, a trader at Yamatane Securities.
Volume was high, with 703.30 million shares traded on the first section of the Tokyo Stock Exchange, compared with Tuesday's 639.14 million.
Traders said the Nikkei average edged into positive territory following the rise on the futures contract, then began testing 18,500, a psychological barrier which had been considered a near-term goal for the market.
A media report that an economic stimulus package out on Thursday could top 16 trillion yen rather than a market expectation of 15 trillion had sent Japanese government bond (JGB) prices falling by late afternoon. Dealers in that market said foreign operators were selling bond futures and buying stock futures after the news.
"Stocks rose strongly in the afternoon after players decided the Nikkei was going to record levels," said Katsuhiko Kodama, head of equities at Toyo Securities.
The Nikkei's previous closing high for the year was on July 19 at 18,532.58.
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