Tokyo Shares Climb, Buoyed by Bullish Outlook For Bourse, Banks; London Prices End Mixed
Tokyo prices climbed broadly Tuesday in heavy volume as futures strengthened and expectations grew for stocks to rack up year-end gains and for housing lenders to clear up their debt problems. London stocks ended little changed after rebounding from lows in a somewhat optimistic response to the British treasury chief's budget presentation.</br></br>World-wide, stock prices rose in dollar terms. The Dow Jones World Stock Index was at 130.28, up 0.83, reflecting increases in markets in the Americas and Asia/Pacific regions, and a drop in Europe/Africa markets.</br></br>Semiconductor stocks were the top gainers in the Dow Jones World Industry Groups, closing at 351.41, up 19.00, or 5.72%, with Micron Technology of the U.S. posting a 12% gain in its local currency. In composite trading on the New York Stock Exchange, the gain was 13%. Oil-drilling stocks trailed, at 132.84, down 2.97, or 2.19%, with Nabors Industries of the U.S. sliding 3.70% in local currency.</br></br>In Tokyo, the Nikkei 225-stock index, which rallied 327.91 points Monday, advanced 145.28 to 18688.42. In trading Wednesday, the Nikkei fell 109.30 points to close the morning session at 18579.12. Tuesday's first-section volume was estimated at 473 million shares, up from 384.9 million shares a day earlier. Gainers outnumbered decliners, 638-401. The Tokyo Stock Price Index, or Topix, of all first-section issues, which climbed 21.58 points Monday, rose 10.75 to 1473.69.</br></br>Banking issues rallied on clearer signs that Japan's housing-loan companies could resolve their bad loans this year. Japan's government reiterated it is committed to finding a solution for mortgage lenders by Dec. 20. Japan's top banks, too, have said they would act to write off their bad loans in the fiscal second half ending March 31. The market also was cheered by Wall Street, which logged its fourth all-time high in a row on Monday. Meanwhile, the Nikkei also got a boost from big rollovers of December futures contracts into March positions.