Tokyo firms
NZPA-Reuter Tokyo Share prices managed to struggle upwards in Tokyo yesterday, closing near their highs, after barely moving throughut the day, brokers said.
The Nikkei index gained 109.64 points, or 0.40 per cent, to 27,756.74. It lost 93.01 points on Friday. Rises led falls about 1.5 to one in dull turnover of 700 million shares against 750 M on the last session.
The index kept to a 120point range, fluctuating from a low of 27,638.79 in the morning to a high 27,758.97 before the close.
There were few players, with some buying by corporations and foreigners and small lot selling by institutions, dealers said. “Market sentiment is very cautious, not because it is afraid of anything in particular, but because of this week’s timetable," said Mr Chris Taylor, head of sales at Baring Securities. U.S. July trade data is due out on Wednesday (Thursday, N.Z. time) and the Tokyo market will be closed for a national holiday on Thursday. “It’s not going to be a terribly active week,” he said.
The market picked up energy last week on a stronger yen and reduced worries about higher U.S. and domestic interest rates. Sentiment was spurred by U.S. unemployment figures which were larger than expected and seemed to signal a slowing of the U.S. economy.
The market is most concerned with whether the U.S. dollar strengthens against the yen as this could spur Japan to raise its discount rate to defend its currency and quell imported inflation. Friday’s 0.6 per cent rise in the August U.S. producer price index boosted initial prices somewhat, but it was generally within expectations and had" little effect on currency.
Investors expect a U.S. July trade deficit at between SUSI IB and SI2B against a 512.58 shortfall in June.
“Most expect that unless the figures are particularly bad, you will not see too much ’activity," said Mr Ross Rowbury, of Sanyo Securities. “People seem to have more confidence in the scenario of a high yen rather than a high dollar.”
Investors are instead focusing any buying on stocks outside of the macro-econo-mic realm which are not sensitive to currency or interest rates.
“It’s going to be all domestic this week. Some speculative names will be mentioned, but the market won't do much." said one broker.
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Press, 13 September 1988, Page 24
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380Tokyo firms Press, 13 September 1988, Page 24
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