Tokyo Stocks up 1.1 Percent After G7 Warnings

Published September 25th, 2000 - 02:00 GMT

Share prices in Tokyo gained 1.1 percent Monday after the Group of Seven (G7) nations warned against high oil prices and a weak euro, brokers said. 

The Tokyo Stock Exchange's Nikkei-225 index rose 174.65 points to close at 15,992.90. The Topix benchmark of all first-section issues rose 11.31 points to 1,478.24. 

Trading was moderate with estimated volume of 418 million shares against 535 million shares on Friday. 

"Investors appreciated the fact that G7 leaders were able to issue appeals to curb soaring oil prices and a slumping euro," said Nikko Securities senior market analyst Kazue Mayuzumi. 

"From the outset, investors boosted a range of issues, including key hi-tech shares." 

The Nikkei index topped 16,000 points in early trading but gradually declined toward the session end on profit-taking, brokers said. 

"A lot of investors became cautious in the afternoon, saying they want to see the US (market) reaction to the G7 meeting," said Kankaku Securities broker Masatoshi Sato. 

Tokyo and other Asian markets got a battering on Friday after a revenue warning from US giant Intel Corp., the world's biggest semiconductor maker and a benchmark for hi-tech stocks.  

But sentiment recovered after Saturday's meeting in Prague of G7 finance ministers and central bankers, which called for increased oil output and stable exchange rates. 

Investors were also heartened after the European Central Bank (ECB), US Federal Reserve and Bank of Japan joined hands Friday in a surprising intervention to prop up the euro. 

"Foreign investors in particular had been worried about the yen's strength against the euro, which could damage Japanese corporate earnings," said Nikko Securities' Mayuzumi. 

The Nikkei had dived 492.80 points on Friday to a six-week low on fears the Intel warning could lead to a bloodbath on US stock markets. But Wall Street fared better than expected on Friday. 

The Dow Jones Industrial Average index finished up 81.85 points at 10,847.37 points while the tech-heavy Nasdaq pared its losses to close just 0.66 percent lower at 3,803.60 points. 

Market leader Sony Corp. rose 10 yen to 11,840 yen, while Japan's largest computer maker Fujitsu Ltd. gained 40 to 2,670 yen -- TOKYO (AFP)  

© 2000 Al Bawaba (www.albawaba.com)

You may also like