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Tokyo stocks fall on lower-than-expected GDP growth, dollar rises |
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June 10, 2000
TOKYO, JUNE 9 (AP) - Tokyo stocks fell early Friday after the government said Japan's economy grew 0.5 percent in fiscal 1999, lower than its goal of 0.6 percent. The U.S. dollar was higher against the yen.
The benchmark 225-issue Nikkei Stock Average shed 203.02 points, or 1.19 percent, to 16,801.32 points in the first 30 minutes of trading. On Thursday, the average closed down 140.62 points, or 0.82 percent.
The dollar bought 106.22 yen, up 0.46 yen from late Thursday in Tokyo and also above its late New York level of 106.00 percent overnight.
On the stock market, the Nikkei index moved lower after the Economic Planning Agency said the gross domestic product - the sum of all goods and services produced - grew 2.4 percent in the January-March period and also rose in the fiscal year to March 31.
Though the January-March results were the first rise after a two-quarter contraction, they were lower than forecasts by economists in Tokyo, who had on average estimated 2.8 percent quarter-on-quarter growth.
Traders said the government may face pressure to compile an extra budget to further bolster the economy, which is just emerging from its worst slowdown since World War II.
In New York, the Dow Jones industrial average fell 144.14 points to 10,668.72 points at Thursday's finish. The Nasdaq composite index fell 13.70 to close at 3,825.56.
The broader Tokyo Stock Price Index of all issues listed on the first section was down 9.43 points, or 0.59 percent, to 1,576.74 points. The TOPIX closed down 2.32 points, or 0.15 percent, the day before.
In currency dealings, the dollar rose against the yen as investors sold the Japanese currency on disappointment over the GDP data.
In other currencies, the euro was traded at 101.50 yen, up from 101.36 yen late Thursday in Tokyo.
The yield on the benchmark 10-year Japanese government bond was unquoted in early trading. On Thursday, it settled at 1.7000 percent and its price stood at 100.00.
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