TOKYO -- Japanese stocks rose Tuesday, and despite volatility due to a special auction of stock rights, the return to the market of retail investors and fund managers after a two-month absence promised smoother trading ahead.
Swinging back from negative territory, a rally in laggard blue-chips helped key Tokyo indices close higher. Volatility was still high in index heavyweights, though, following an auction to buy the rights of stocks that will split in the future.
rose 93.31 points to 20,374.34, while the
index, which includes all shares listed on the
Tokyo Stock Exchange's
first section, climbed 26.93, or 1.6%, to 1680.76. The
small-cap index inched up 2.43, or 2.3%, to 105.86, while the Nikkei
index rose 20.81, or 1.0%, to 2206.80.
Fund managers targeting blue-chips such as financial and large electronics firms provided a solid base for Tuesday trading, since any securities traded today will settle in fiscal year 2000, which starts on April 1. Many of the new mutual funds being set up -- about 15 are expected by the end of May -- are targeting low-priced blue-chips, not tech shares.
Key indices swung back and forth throughout the day, largely due to an auction by
Japan Securities Finance
, a financing company that provides loans to other securities firms for margin transactions. The JSF today auctioned the rights to buy stocks that will split in the future. Shares affected by short-term volatility from this auction included
, down 80 yen to 13,120.
rose 220,000, or 5.5%, to 4.26 million. Despite technical difficulties with its I-mode Internet service on its mobile phones, investors cheered a local report that the company was getting ready to offer mobile phone Internet service in the U.S. by the end of the year.
Other Net, tech and telecom firms rose.
Nippon Telegraph and Telephone
climbed 70,000, or 4.6%, to 1.61 million,
rose 570, or 6.9%, to 8850,
rose 5000, or 6.1%, to 86,500, while
gained 145, or 5.3%, to 2875.
, which shed 5000, or 6.8%, to 68,800, said it bought a 20% stake in
, a U.S. mobile device software developer. The two plan to set up a joint venture to develop mobile commerce software targeting Asian customers.
The greenback fell to 106.40 yen, as U.S. investors started to unwind long-dollar positions, currency dealers said.
index managed to close up 8.83 at 18,301.69, despite selling from foreign investors in some tech shares ahead of the close of the first quarter.
Pacific Century CyberWorks
closed at its key psychological support of $HK20.00, down 0.45, or 2.2%, ahead of a
Cable & Wireless HKT
board meeting that is expected to give official approval for PCCW to take it over.
shed 1.75, or 1.9%, to 92.75, while
lost 0.40, or 2.8%, to 13.90.