Originally created 08/20/04

Tokyo stocks end higher on Wall Street's gains



TOKYO -- Tokyo stocks rose Thursday as investors bought a broad range of issues following Wall Street's overnight strength. The U.S. dollar was down against the Japanese yen.

The Nikkei Stock Average of 225 issues closed up 129.27 points, or 1.20 percent, at 10,903.53 points Thursday. On Wednesday, the index gained 48.29 points, or 0.45 percent.

The dollar was quoted at 109.51 yen at 5 p.m. (0800 GMT) Thursday, down 0.41 yen from late Wednesday in Tokyo but above the 109.34 yen it bought in New York later that day.

Tokyo stocks quickly rose as investors welcomed Wall Street's gains overnight.

High-technology issues led the rise, with Advantest climbing 3.8 percent, Kyocera adding 1.6 percent while Tokyo Electron finished up 2.5 percent.

Matsushita Electric, NEC and Sony also rose.

Toyota, Honda and many pharmaceutical companies, such as Takeda and Yamanouchi, succumbed to profit-taking.

Still, despite Thursday's gains, players said the Nikkei will likely remain top-heavy as the share prices adjust from recent gains.

"The correction phase is nearly over, but not quite done yet," said Shigeharu Shiraishi, a managing director at Societe Generale Asset Management (Japan).

The market's direction may shift upward in mid-September, Shiraishi said, when the government will likely revise up April-June gross domestic product data after factoring in stronger capital expenditures.

Shiraishi said he also expects many Japanese companies to raise their earnings estimates over the coming two months, which would help share prices.

Overnight in New York Wednesday, U.S. stocks advanced as investors shrugged off rising crude futures and focused on valued shares.

The Dow Jones industrial average gained 110.32, or 1.1 percent, to close at 10,083.15. The Nasdaq climbed 36.12, or 2 percent, to 1,831.37.

In Tokyo Thursday, the broader index of all issues on the Tokyo Stock Exchange's first section gained 12.60 points, or 1.15 percent, to close at 1,107.48 points. The TOPIX added 4.95 points, or 0.45 percent, the day before.

Gainers outnumbered losers 1,170 to 286, while 104 issues were unchanged on the first, or main, section of the exchange.

Volume rose to an estimated 1.052 billion shares from 847.23 million shares Wednesday.

In other currencies, the euro slipped to $1.2339 late Thursday in Tokyo from $1.2362 late Wednesday. Against the yen, the euro was down at 135.13 yen from 135.71 yen.

In the bond market, the yield on Japan's benchmark 10-year government bond rose to 1.5850 percent from 1.5650 percent late Wednesday. Its price dipped 0.18 to 102.67 points.

On the Net:

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