Tokyo stocks edge higher, dollar lower against yen in early trading
( 2001-09-19 10:59) (7)
Tokyo stocks advanced in early trading on Wednesday after the previous day's interest-rate cut by Japan's central bank. The US dollar was lower against the yen.
The benchmark 225-issue Nikkei Stock Average rose 115.05 points, or 1.19 per cent, to 9,794.93 at the open. On Tuesday, the average closed up 175.47 points, or 1.85 per cent.
The dollar bought 117.32 yen in early trading, down 0.50 yen from late Tuesday in Tokyo but above its late New York level of 117.23 yen overnight.
On Tuesday, the Bank of Japan eased credit, joining in a global effort led by the US Federal Reserve Board to try to calm jittery investors following last week's terror attacks in the United States.
The Bank of Japan lowered its largely symbolic official discount rate _ the rate the central bank charges on loans to commercial banks _ to 0.10 per cent from 0.25 per cent.
Other central banks that have cut their interest rates this week include the United States, Great Britain, Canada, Switzerland, Sweden, Denmark, Taiwan, Hong Kong and New Zealand.
Lower interest rates tend to boost stock trading because the cost of borrowing becomes cheaper.
In New York, the Dow Jones industrial average fell 17.30 to 8,903.40 at Tuesday's close. The Nasdaq composite index finished at 1,555.08, down 24.47.
On Monday -- the first day of trading since hijacked jetliners smashed into the World Trade Center and the Pentagon -- the Dow lost a record 684.81 points and fell below 9,000 for the first time since December 1998.
The broader Tokyo Stock Price Index of all issues listed on the first section was up 10.10 points, or 1.00 per cent, to 1,023.19. The TOPIX closed up 16.64 points, or 1.67 per cent, the day before.
In currency dealings, the dollar was lower against the yen as investors remain cautious over how Wall Street will move in coming days.
In other currencies, the euro was traded at 108.76 yen, up from 108.45 yen late Tuesday in Tokyo.
The yield on the benchmark 10-year Japanese government bond was unquoted in early trading. On Tuesday, it settled at 1.3550 per cent and its price stood at 100.39.
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