Originally created 06/16/04

Tokyo stocks lower, dollar up against yen

TOKYO -- Tokyo stocks fell Tuesday for the third straight session as technology stocks followed a slide on Wall Street a day earlier. The U.S. dollar was up against the Japanese yen.

The Nikkei Stock Average of 225 stocks closed down 103.96 points, or 0.90 percent, at 11,387.70. On Monday, the index fell 35.16 points, or 0.31 percent.

The dollar was quoted at 110.94 yen by late afternoon Tuesday, up 0.05 yen but below the 111.14 yen it bought in New York. The currency traded between 110.65 yen and 111.31 yen in Tokyo.

On the stock market, Wall Street's fall on Monday dampened the market's mood at the opening, and trading remained restrained throughout the day.

In New York, the Dow Jones industrial average sagged 75.37, or 0.7 percent, to 10,334.73 Monday. The Nasdaq composite index dropped 29.88, or 1.5 percent, to 1,969.99.

On Tuesday in Tokyo, high technology issues Advantest and Tokyo Electron, as well as electronics giants Matsushita, NEC and Toshiba, fell.

The broader index of all issues on the Tokyo Stock Exchange's first section fell 7.24 points, or 0.62 percent, to 1,151.30. The index sank 1.76 points, or 0.15 percent, on Monday.

Declines in stock prices also boosted bond prices Tuesday.

Japan's benchmark 10-year government bond price rose 0.45 to 98.34 points. Its yield slipped at 1.7950 percent from 1.8500 percent late Monday.

Bond yields have surged in recent months amid signs that Japan's economy is recovering, sparking concerns that rising long-term interest rates could threaten to choke off the recovery by increasing borrowing costs and slowing investment. On Monday, the JGB yield rose to 1.8550 percent, the highest level since October 2000.

"We need to watch interest rates carefully as they may have a negative effect on the Japanese economy," said Finance Minister Sadakazu Tanigaki Tuesday, warning against sudden and premature gains.

In other currencies, the euro rose to $1.2037 in Tokyo late Tuesday from $1.1971 late Monday. Against the yen, the euro stood at 133.93 yen, up from 132.71 yen.

On the Net:

Tokyo Stock Exchange: http://www.tse.or.jp


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