27 September 2002, 09:13  Stocks open higher, dollar down against yen

/www.fxserver.com/ TOKYO (AP) -- Tokyo stocks opened higher Friday after reports the Japanese government will accelerate banks' bad loan disposals. The dollar was down against the yen.
The benchmark 225-issue Nikkei Stock Average was up 94.82 points, or 1.02 percent, to 9415.74 at the opening of trade Friday after local media reported the government plans to make it easier for banks to dispose of their bad loans. The Nikkei closed up 155.51 points, or 1.70 percent, at 9,320.92 Thursday
The dollar was trading at 122.18 yen on the Tokyo foreign exchange market at 9 a.m. Friday, down 0.72 yen from late Thursday and from its New York trading level Thursday of 122.65 yen. The dollar slipped as the yen was lifted by news of the government's bank measures.
Reports in major newspapers said the government is considering ways to enable the state-run Resolution and Collection Corporation to buy bad loans at higher prices than before and thus encourage banks to unload their diminished assets. The reports said the government may also inject public funds into banks to keep them from becoming undercapitalized.
Non-performing loans and the weakened state of banks have long weighed on Japanese share prices.
On Wall Street overnight, the Dow Jones industrial average closed up 155.30, or 2 percent, at 7,997.12, according to preliminary calculations.
The broader Tokyo Stock Price Index opened up 9.59 points, or 1.05 percent, to 923.54 Friday. The TOPIX gained 13.10 points, or 1.45 percent, to close at 913.95 Thursday.
The euro traded at 119.43 yen early Friday, down from 120.38 yen late Thursday in Tokyo. Against the dollar, the euro was quoted at 97.69 cents, down from 97.99 cents late Thursday.
The yield on the benchmark 10-year government bond rose to 1.2400 percent from 1.2550 percent Thursday. Its price fell 0.08 to 99.64.

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