Tokyo stocks close higher Tuesday, US$ down against yen

TOKYO (AP) - Tokyo stocks advanced Tuesday, continuing their climb from a near 12-month high the previous day and on the heels of an overnight rally on Wall Street.  

The U.S. dollar was lower against the Japanese yen. 

The Nikkei Stock Average of 225 selected issues on the Tokyo Stock Exchange was up, 141.13 points, or 1.41 percent, at 10,174.10. 

The index rose 169.50 points, or 1.72 percent, at 10,032.97 Monday - its highest since finishing at 10,067.74 on Aug. 26, 2002. 

The dollar was trading at 119.29 yen on the Tokyo foreign exchange market at 3 p.m. (0600 GMT), down 0.03 yen from late Monday in Tokyo and below the 119.46 yen it bought in New York later that day. 

On the stock market, broad-based buying by foreigners and local individual investors lifted shares of banks, automobile issues and telecoms. 

Chipmakers Toshiba, Hitachi and Mitsubishi Electric ended the day stronger after getting a boost from overnight gains by their U.S. counterparts. 

Akihide Kinugawa of T&D asset management said the Nikkei's rally reflected the subsiding risks of holding shares in Japanese companies as their profits climb and balance sheets improve. 

"Foreigners are just adjusting their portfolio back to normal - where it was before,'' Kinugawa said. 

On Wall Street Monday, stock prices rose sharply in a quiet session as business returned to usual in the market following last week's energy blackout in the northeastern United States. 

The Dow Jones industrials climbed 90.76, or 1 percent, to 9,412.45 - their highest close in 14 months. 

The last time the Dow stood higher at the end of a session was June 20, 2002, when it was at 9,431.77. 

The tech-heavy Nasdaq composite index rose 37.48, or 2.2 percent, to 1,739.49. 

The Tokyo Stock Price Index gained 14.64 points, or 1.5 percent, to 990.64 points Tuesday.  

The TOPIX, which includes more than 1,000 of Japan's largest companies, gained 11.22 points, or 1.16 percent, Monday. 

In other currency trading, the euro was lower against the dollar and yen. It bought US$1.1128 Tuesday, down from US$1.1227 late Monday. 

Against the yen, the euro was at 132.75 yen, down from 133.92 yen Monday. 

Bond yields continued to rise as investors shifted their money to the stock market. 

The yield on the benchmark 10-year bond surged to 1.4100 percent Tuesday afternoon, its highest level since May 2002.  

Late Monday, the yield was quoted at 1.2100 percent. 

The bond's price, which moves in the opposite direction, fell 1.69 to 96.46. - AP 

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