Y2K Worries Bring Down Tokyo Stocks, Dollar Higher Against Yen

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Dec 9, 1999 - 07:23 AM

Y2K Worries Bring Down Tokyo Stocks, Dollar Higher Against Yen

The Associated Press

TOKYO (AP) - Investors worried about computer problems in the new millennium began pulling out of the Tokyo stock market today, pushing share prices lower. The dollar edged higher against the yen.

The benchmark 225-issue Nikkei Stock Average shed 140.48 points, or 0.57 percent, to close at 18,260.72. On Wednesday, the average closed down 192.76 points, or 1.04 percent.

The dollar bought 103.06 yen at 5:00 p.m. (3 a.m. EST), up 0.26 yen from late Wednesday in Tokyo and also above its late New York level of 102.90 yen overnight.

In stock trading, the Nikkei fell on fears of Y2K-related computer problems, with some investors closing positions to be on the safe side.

"With worries about computer problems at the end of the year, investment trusts and index funds are selling to increase their cash positions," said Tsuguya Onozuka, a dealer at Yamatane Securities.

Concerns that share prices might drop when the special quotation for December futures and options contracts is announced Friday also weighed down the market, traders said.

An estimated 545 million shares changed hands on the first section of the Tokyo Stock Exchange, down from 591 million shares the previous day.

Decliners outnumbered advancers 817 to 392, while 138 issues were unchanged.

In New York on Wednesday, the Dow Jones industrial average shed 38.53 points to close at 11,068.12.

The broader Tokyo Stock Price Index of all issues listed on the first section closed down 9.32 points, or 0.58 percent, at 1,611.75. The TOPIX closed down 11.07 points, or 0.68 percent, the day before.

In foreign exchange, the dollar stayed in a narrow range in lackluster trading ahead of the holiday lull.

"The market is going to be dead, especially next week and the week after that, so people are already starting to step back," said Hideaki Inoue, a foreign exchange manager at Mitsubishi Trust and Banking.

The dollar ranged between 102.84 and 103.11 during the day's trading.

In other currencies, the euro was traded at 105.96 yen, up from 105.70 yen late Wednesday in Tokyo.

The yield on the benchmark 10-year Japanese government bond fell to 1.7200 percent from Wednesday's finish of 1.7400 percent. Its price rose 0.17 point to 101.53.

====================================== End

Ray

-- Ray (ray@totacc.com), December 09, 1999

Answers

Ut Oh

-- Susan Barrett (sue59@bellsouth.net), December 09, 1999.

This is such a tiny drop for their market, why do they think its due to Y2K ?.

If people starting dumping due to Y2k I think we would see more like 500-750 points down.

-- hamster (hamster@mycage.com), December 09, 1999.


Wow... a whole 1/2 percent lower. They are really in a panic... not.

Do you get the feeling that someone is trying to start a panic with these articles... like the one a couple of days ago People are panicking already (which had no evidence of panic in the article). ???

-- Linda (lwmb@psln.com), December 09, 1999.


If this is contagious, it's bye-bye Dow Jones and hello gold!

-- cody` (cody@y2ksurvive.com), December 09, 1999.

Geez, the Dow gains and sheds over a hundred points several times a week lately. This is a panic? I'd like to see what this journalist would say if the Nikkei dropped about 1,000.

-- (Polly@troll.com), December 09, 1999.


Before the current troubles, didn't the index float around 30,000 or so? I don't recall any reports of 'panic' when it fell to the current levels.

Kook

-- Y2Kook (Y2Kook@usa.net), December 09, 1999.


NY markets just opened. People are panicking. Panicking that they cant buy enough stocks !

Right at the open Nasdaq shot up 60 points. Dont know if thats going to stay, but this is not a reflection of anything that happened in Tokyo.

-- hamster (hamster@mycage.com), December 09, 1999.


I heard this precipitous drop is due to a rumor that Godzilla might soon reappear.

-- Rich (trubeliever@webtv.net), December 09, 1999.

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