Wednesday March 3, 2:59 am Eastern Time
Nikkei ends up 1.79% on steady dollar, sliding rates
By Hiroko Nakata
TOKYO, March 3 (Reuters) - Tokyo stocks took back most of the previous day's losses
by the close on Wednesday, buoyed by the dollar's steady tone against the yen and a slide in Japan's interest rates, traders
said.
A string of news about Japanese firms' restructuring efforts also heartened the market, they said.
The Nikkei 225 average closed 249.30 points or 1.79 percent higher at 14,170.36. March Nikkei futures finished 250 points
higher at 14,160.
''The Nikkei 225 reversed yesterday's losses as the dollar climbed and domestic interest rates fell,'' said Noriko Irie, market
economist at Fuji Securities Co Ltd.
Traders said the stock market was relieved as a slide in the dollar against the yen would harm Japanese exporters'
competitiveness in global markets, and a rally in interest rates could damage Japan's already flagging economy.
The dollar clawed above 121 yen on Wednesday afternoon in Tokyo against 119.98/08 yen in late New York trade on
Tuesday, while Japan's key short-term call rates fell near zero.
The yield of the key 10-year Japanese government bond dropped to 1.690 percent, down from 1.805 percent late on
Tuesday.
The market was also supported by positive news at individual companies. ''News about restructuring, such as that from
Chiyoda, stimulated investor confidence,'' said Tetsuya Ishijima, chief strategist at Okasan Securities Co Ltd.
Shares in Chiyoda Corp rallied on news that the petrochemical plant engineering firm had been in talks with Kellogg, Brown &
Root of the United States on a capital tie-up and hoped for an agreement later this month.
Traders said Chiyoda Corp would restructure extensively with the aid of Kellogg. The business daily Nihon Keizai Shimbun
said on Wednesday that Kellogg would acquire a seven percent stake in Chiyoda.
Chiyoda Corp ended 10 yen or 3.7 percent higher at 280, after rising as high as 301.
Trading volume was light with a total of 395.30 million shares changing hands on the first section of the Tokyo Stock Exchange.
Broader indices were also higher. The TOPIX index of all first-section shares rose 7.73 points or 0.71 percent to 1,099.81.
The Nikkei 300 gained 1.55 points or 0.71 percent to end at 219.44. The second section index was up 4.31 points or 0.33
percent at 1,311.55.
Advancing issues outpaced decliners 691 to 411, with 195 issues unchanged.
Restructuring stories that helped the stock market included Nissan Motor Co Ltd . The company rose 13 yen or 2.78 percent to 480 in heavy volume after its announcement on Monday that it would consolidate
vehicle parts purchasing operations at its two North American assembly plants. Traders said speculation continue that French car maker Renault SA may take a stake in the company.
Elsewhere in the market, Ibiden Co Ltd rose 125 yen or 7.62 percent to 1,765, after the printed circuit-board manufacturer
revised its 1998/99 group net forecast up to 5.70 billion yen from 5.20 billion yen.
Sony Corp was up 380 yen or 4.37 percent at 9,070 and Sony Music Entertainment (Japan) Inc was up 270 yen or 4.27
percent at 6,590, after affiliate Sony Computer Entertainment announced on Tuesday plans to launch a new version of its
popular PlayStation game machine by March 2000.
More Quotes and News:
NIKKEI 225 INDEX (Nihon Keizai Shimbun Inc) (^N225 - news) |
