The storm may have subsided. Let us hope that trading in 9984 will be as brief as today's session over the next month for exactly the same reasons.
Wednesday, March 29, 2000
Stocks Open Higher On Strong Demand From Funds
TOKYO (Dow Jones)--The Nikkei 225 stock average has surged higher after opening Wednesday, supported by strong demand for Japanese equities from institutional investors, including big pension funds, players said.
Finance-related and communications issues are leading the market so far.
At 0050 GMT (7:50 p.m. EST Tuesday), the Nikkei Stock Average of 225 selected issues is up 162.59 points at 20536.93. Market analysts say the index looks top-heavy at around 20600.
"Demand is firm, and the launch of several new investment trusts on Thursday and Friday is fueling expectations that it will remain so," said Kazunori Jinnai, a senior equities department manager at Daiwa SB Capital Markets.
Other players say that in addition to investment trusts big pension funds are starting to funnel new capital into the market.
The near-term June Nikkei futures contract is trading at 20540, up 60 points on the Osaka Securities Exchange.
In the broader market of the Tokyo Stock Exchange First Section, 869 issues are up, 369 are down and 131 are unchanged from Tuesday. The Topix index of all TSE First Section issues is up 31.67 points at 1712.43.
In New York Tuesday, the Dow Jones Industrial Average ended down 89.74, or 0.81%, at 10936.11 as a host of technology issues lost ground. The losses showed up more dramatically in the Nasdaq Composite Index, which fell 124.59, or 2.51%, to 4833.97.
On Tuesday, the Nikkei Stock Average of 225 selected issues rose 93.31 points to 20374.34 after rising 322.95 points Monday and 253.48 points Friday. The index marked its highest closing level since July 29, 1997.
Before the opening Wednesday, investors were net buyers of Japanese stocks at 13 foreign brokerages, Kyodo News quoted market sources as saying. Buy orders for 46 million shares outpaced sell orders for 34 million.
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