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Dollar climbs in Japan market |
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April 11, 2000
TOKYO, APR 10 (AP) - The U.S. dollar climbed against the yen Monday morning after data showed that downward pressure on Japanese domestic prices remains a problem. Tokyo stocks rose.
The dollar bought 106.08 yen in late morning trading, up 1.11 yen from late Friday in Tokyo and also above its late New York level of 105.38 yen on Friday.
The benchmark 225-issue Nikkei Stock Average gained 310.78 points, or 1.53 percent, to 20,563.59 at the end of morning trading. On Friday, the average closed up 29.20 points, or 0.14 percent.
In currency dealings, the dollar strengthened against the yen after the Bank of Japan announced that domestic wholesale prices fell 1.0 percent in fiscal 1999, which ended March 31.
The domestic wholesale price index stood at 96.0 against a base of 100 for 1995. The latest figure showed Japan remained under deflationary pressure with the WPI effectively falling for the eighth straight year.
As Japan fights to emerge from its worst economic downturn in decades, businesses have come under intense pressure to lower prices amid a stubborn slump in consumption.
But economists say falling prices can cut into corporate earnings and trigger salary cuts and rising unemployment, which dampens consumer confidence further.
Also Monday, many players were waiting for a speech by U.S. Federal Reserve Chairman Alan Greenspan at a conference in the United States later Monday for clues about American interest rates.
In other currencies, the euro was traded at 101.28 yen, up from 100.64 yen late Friday in Tokyo.
On the stock market, the Nikkei started sharply higher on broad-based buying spurred by the U.S. Nasdaq Composite surge Friday.
Hiroichi Nishi, a senior manager at Nikko Securities Co., said Tokyo stocks were higher almost across-the-board. "Market sentiment is very firm," he added.
In New York, the Nasdaq composite index closed at 4,446.45 on Friday, up 178.89. The Dow Jones industrial average fell 2.79 points to 11,111.48 at Friday's finish.
The broader Tokyo Stock Price Index of all issues listed on the first section was up 38.37 points, or 2.29 percent, to 1,715.99. The TOPIX closed up 19.94 points, or 1.2 percent, on Friday.
The yield on the benchmark 10-year Japanese government bond stood at 1.7200 percent, unchanged from Friday's finish. Its price remained unchanged at 101.55.
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