The Tokyo Stock Exchange stages a sharp recovery on Monday (5 February) after its heavy plunge last week.
SV EXT Stock Exchange
CU Sign "Tokyo Stock Exchange"
GV & SV INT Activity in Exchange (8 shots)
SV Foreign Exchange Board
SV & GV Staff at desl (3 shots)
Initials BB/0015 RW/BOB/BB/0011
Script is copyright Reuters Limited. All rights reserved
Background: The Tokyo Stock Exchange stages a sharp recovery on Monday (5 February) after its heavy plunge last week.
At the same time, selling of dollars was carried out only on a limited scale on Tokyo's Foreign Exchange Market as exchange banks adopted a cautious attitude. Dealers said the lull in the heavy selling of dollars that characterised last week's dealings was due in part to a firm warning issued by the Finance Ministry against the speculative unloading of dollars.
It was also said that some of the banks oversold on Saturday and were recovering their positions by buying dollars for immediate delivery on Monday.
SYNOPSIS: Tokyo Stock Exchange staged a record recovery on Monday after last week's heavy plunge.
At day's and the market had regained about a third of the ground lost in last week's trading.
The market average closed on the largest gain in the exchange's history and brokers said the rise was mainly due to cheap buying in a market where the number of sellers was limited. They said the market was also reacting favourably to relative clam on the Tokyo foreign Exchange Market, as well as an easing of controls over margin trading.
On the Foreign Exchange, selling of dollars was limited. Dealers said the lull in the heavy selling that characterised last week's dealings was due in part to a firm warning issued by the Finance Ministry against speculative unloading of dollars.