Tokyo stocks rally Monday, close highest in a year

TOKYO (AP) - Tokyo's benchmark stock index rose more than 3 percent Monday to close at its highest point in over a year after encouraging U.S. economic reports sparked hopes of an economic turnaround.  

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

The Nikkei Stock Average of 225 selected issues on the Tokyo Stock Exchange closed up 326.63 points, or 3.16 percent, at 10,670.18 - its highest close since July 10, 2002 when it ended at 10,752.66 points. 

On Friday, the index gained 118.33 points, or 1.16 percent. 

The dollar was trading at at 116.68 yen on the Tokyo foreign exchange market at 3 p.m. (0600 GMT) Monday, down 0.44 yen from late Friday in Tokyo and below the 116.95 yen it bought in New York later that day. 

On the stock market, broad-based buying led the benchmark Nikkei higher as markets shrugged off the yen's growing strength, which tends to hurt exports. 

Technology and exporter blue chips, including Matsushita Electric Industrial, Toyota Motor, NTT DoCoMo, Sony and Canon, ended higher. 

Investors were cheered by Wall Street's gains Friday, when encouraging reports on U.S. consumer spending and the manufacturing sector gave hope of an economic recovery. 

The Dow Jones industrial average closed up 41.61, or 0.4 percent, at 9,415.82. 

The Nasdaq composite index rose 10.27, or 0.6 percent, to 1,810.45. With Friday's advance, the Dow posted its sixth straight winning month, while the Nasdaq had its seventh consecutive monthly gain. 

In other Tokyo trading, the broader Tokyo Stock Price Index gained 25 points, or 2.49 percent, to 1,027.01. 

The TOPIX, which includes more than 1,000 of Japan's largest companies, rose 8.50 points, or 0.43 percent, Friday. 

In other currency trading, the euro was up against both the dollar and yen. It rose to US$1.1010 Monday morning from US$1.0918 late Friday. 

Against the Japanese currency, the euro was down at 128.53 yen from 127.87 yen.In bond trading, the yield on the benchmark Japanese government 10-year bond rose to 1.5600 percent Monday from 1.4550 percent late Friday.  

Its price fell 0.86 point to 95.24. - AP 

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