Tokyo shares rebound on gains in U.S. stocks, fall in oil prices.
TOKYO, Aug. 30 Kyodo
The key Nikkei stock average Nikkei stock average
Applies mainly to international equities. Price-weighted average of 225 stocks of the first section of the Tokyo Stock Exchange started on May 16, 1949. Japanese equivalent of the US Dow. climbed Tuesday morning, erasing most of its losses marked the previous day, as investors were encouraged to buy shares on dips after a rebound on Wall Street and a fall in crude oil prices overnight.
The 225-issue Nikkei Stock Average rose 96.63 points, or 0.78 percent, to end the morning at 12,406.46. The broader Tokyo Stock Price Index of all First Section issues on the Tokyo Stock Exchange Tokyo Stock Exchange
Main stock market of Japan, located in Tokyo. It opened in 1878 to provide a market for the trading of government bonds newly issued to former samurai. climbed 9.00 points, or 0.72 percent, to 1,267.64.
The Tokyo market staged a strong start, led by gains in mainstay issues, such as banks, brokerage firms and automakers, which faced heavy selling the previous day.
Tokyo stocks were supported as investors breathed a sigh of relief after hurricane Katrina weakened and the key crude oil futures contract fell from an all-time high above $70 per barrel hit in after-hours trading Sunday, brokers said.
''Stocks fell the previous day on expectations that U.S. shares would fall overnight amid fears over the hurricane,'' said Tsuyoshi Segawa, equity strategist at Shinko Securities Co.
But U.S. shares rebounded and oil prices fell Monday ''in the opposite scenario that investors expected yesterday, so much of today's rebound looks reasonable,'' Segawa said.
Advancers beat decliners 971 to 469, with 198 shares ending the morning unchanged.
Among other notable gainers were steel, marine transport and wholesale issues. The losing sectors were mining, oil and coal, fisheries-related and warehouse issues.
Trading volume on the TSE's main section increased to 860.05 million shares from Monday morning's 774.12 million shares.
Buy orders foreign brokerages placed before the opening are believed to have exceeded sell orders for the third straight trading day, and the net buying volume was much larger than that of the previous day, according to brokers.
Looking ahead, brokers said a wait-and-see mood is expected to grow toward the Sept. 11 general election to see whether Prime Minister Junichiro Koizumi can stay in power to implement his reform policies. Official campaigning for the election kicked off Tuesday.
Mizuho Financial Group Mizuho Financial Group, Inc. (株式会社みずほフィナンシャルグループ was the most heavily traded issue by value in the morning. It rose 11,000 yen to 606,000 yen.
Medium-size hotel chain operator Tokai Kanko was the morning's volume leader, up 7 yen to 61 yen.
Softbank advanced 70 yen to 5,430 yen one day after its group firm Softbank BB Corp. said it has agreed with Japan Telecom Co. to integrate their public wireless local area network, or LAN (Local Area Network) A communications network that serves users within a confined geographical area. The "clients" are the user's workstations typically running Windows, although Mac and Linux clients are also used. , systems.
The TSE's Second Section index added 14.49 points, or 0.38 percent, to 3,825.16 on a volume of 196.15 million shares. In Osaka, the near-term September Nikkei 225 index futures contract advanced 80 points to 12,400.
In New York on Monday, the Dow Jones Industrial Average Dow Jones Industrial Average
The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. rose 65.76 points, or 0.63 percent, to 10,463.05. The Nasdaq Composite Index Nasdaq Composite Index
An index that indicates price movements of securities in the over-the-counter market. It includes all domestic common stocks in the Nasdaq System (approximately 5,000 stocks) and is weighted according to the market value of each listed was up 16.88 points, or 0.80 percent, to 2,137.65.