Tokyo Prices Surge, Bolstered by Strong Dollar; Several Bourses Extend Record-Setting Streaks
Tokyo stocks racked up a 1.3% gain Wednesday, bolstered by a stronger U.S. dollar against the yen and more indications that the Japanese government will support ailing banks. The London market ended mixed, its early gains erased by a sharp drop in British unemployment. Frankfurt equities jumped to their eighth consecutive record. Amsterdam, Mexico City and Sydney shares all extended their record-setting streaks.</br></br>World-wide, stock prices rose in dollar terms. The Dow Jones World Stock Index was at 150.35, up 1.33, reflecting higher markets in the Americas and Asia/Pacific and declines in Europe/Africa.</br></br>Semiconductor stocks were the top gainers in the Dow Jones Global Industry Groups, closing at 555.53, up 22.37, or 4.20%, with Applied Materials of the U.S. posting a 15.51% gain. Trucking stocks trailed at 82.39, down 1.08, or 1.29%, with Arnold Industries of the U.S. sliding 9.84%.</br></br>In Tokyo, the Nikkei 225-stock index climbed 228.79 points to 18409.96, after advancing 314.13 points Monday; the market was closed Tuesday for a national holiday. On Thursday, the Nikkei surged 343.18 points to close the morning session at 18753.14. Wednesday's first-section volume was estimated at 457 million shares, up from 340.5 million shares on Monday. Losers narrowly topped gainers, 552-523. The Tokyo Stock Price Index, or Topix, of all first-section issues gained 13.54 points, or 1%, to 1368.43.</br></br>The head of Japan's ruling Liberal Democratic Party said the government was prepared to use tax funds to help commercial banks in an emergency; this followed the finance minister's Monday remarks, also suggesting government support for the banks. Positive sentiment prompted buying to cut losses in short sales of stock that had been borrowed in hopes of a price drop that would allow its replacement at a profit. With the dollar up against the yen in Tokyo, Japanese public pension funds bought export-oriented real estate issues, which soared 2.1%, while foreign investors snapped up high-technology blue chips; the electronics sector zipped up 1.9%.