Originally created 08/24/04

Tokyo stocks climb, U.S. dollar up against Japanese yen



TOKYO -- Tokyo stocks climbed Monday as investors took confidence from Wall Street's rally last week. The U.S. dollar was up against the Japanese yen.

The Nikkei Stock Average of 225 issues rose 71.83 points, or 0.66 percent, closing at 10,960.97 points. On Friday, the index lost 14.39 points, or 0.13 percent.

The dollar was quoted at 109.36 yen by late afternoon Monday, up 0.24 yen from late Friday in Tokyo and above the 109.23 yen it bought in New York later that day.

Investors bought shares in Sony, Sharp and TDK as the fall in crude oil prices eased concerns about corporate earnings.

Gains by the high-technology heavy Nasdaq market last week also lifted their Japanese counterparts.

Still, UFJ Tsubasa Securities chief strategist Seiki Orimi warned there were few incentives to continue buying Japanese stocks after recent data indicating economic growth had slowed.

The government said earlier this month that gross domestic product expanded at an annualized rate of 1.7 percent for the April-June period from the previous quarter. This figure marked a drop-off from growth of 6.6 percent in January-March and 7.4 percent for October-December 2003.

"If you consider the likelihood that this year's strong economic recovery momentum is over now, you'll see that it is risky to buy up stocks" when the Nikkei is above 11,000, Orimi said.

The Dow Jones industrial average ended up 0.7 percent on Friday while the Nasdaq composite index gained 1 percent.

The broader index of all issues on the Tokyo Stock Exchange's first section, climbed 4.40 points, or 0.40 percent, to 1,114.24 points at the end of Monday's trading. The index gained 2.36 points, or 0.21 percent, Friday.

Volume on the first, or main, section of the exchange fell to 1.047 billion shares from 1.072 billion shares Friday.

Gainers lead decliners 948 to 461 while 151 issues ended unchanged.

In other currencies, the euro slipped to $1.2294 Monday in Tokyo from $1.2373 late Friday. Against the yen, the euro was down at 134.49 yen from 134.98 yen.

In the bond market, the yield on Japan's benchmark 10-year government rose to 1.5950 percent from 1.5650 percent Friday. Its price dropped 0.27 point to 102.58.

On the Net:

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