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Stock Prices Rebound, Dollar Weakens

September 5, 1991

TOKYO (AP) _ Share prices rose in late morning trading Thursday and the dollar weakened against the yen.

The 225-issue Nikkei Stock Average gained 179.50 points, or 0.80 percent, closing the morning session at 22,582.19. On Wednesday, the average fell 67.11 points, or 0.30 percent.

The dollar was changing hands at 135.44 yen at late morning, down 0.41 yen from Wednesday’s close and just below its overnight finish at 135.50 yen in New York.

The benchmark No. 129 10-year Japanese government bonds stood at 100.83 points by late morning, up from Wednesday’s 100.66-point finish. Their yield fell to 6.250 percent from 6.280 percent.

Akihide Saito of the stock information department with Sanyo Securities said the Nikkei index was firming on expectations that interest rates would be lowered in both Japan and the United States.

Continued active buying by foreign investors was also supporting the market’s main index, Saito said.

Analysts say the U.S. Federal Reserve Board may further lower its discount rate if the monthly employment report Friday is discouraging.

Other traders said some investors were retreating to the sidelines ahead of the Bank of Japan’s quarterly survey on business sentiment, also due out Friday.

On the foreign exchange market, the dollar started lower in Tokyo following selling pressure in the Sydney market, which opens earlier than Tokyo’s, said Yuko Fukakusa, a dealer with Tokai Bank.

Ms. Fukakusa said there was some buying, pushing the dollar as high as 135.53 yen at one point, from where it faced selling pressure again.

Most traders are choosing to adjust their dollar positions the rest of the day prior to Friday’s release of U.S. jobless figures, she said.