TOKYO (AP) -- Tokyo stocks slipped in morning trading Thursday after closing at a 19-year low the day before, amid doubts about whether Japan's economy can sustain growth. The dollar was stronger against the yen. The benchmark 225-issue Nikkei Stock Average surrendered 16.66 points, or 0.20 percent, to 8,421.86 points. On Wednesday, the Nikkei fell 26.25 points, or 0.31 percent, to end at 8,438.52 points for its lowest close since April 8, 1983, when it closed at 8,435.37 points. Economic data Wednesday indicating that exports from Japan are likely to taper off caused stocks to open lower Thursday. While bargain hunters provided some support Thursday morning, pessimism about the economy dominated.
Japan's tenuous economic growth has largely depended on healthy sales of goods overseas, so a dive in exports would likely lead to economic contraction here. The dollar bought 120.35 yen at 11 a.m. Thursday, up 0.66 yen from late Wednesday, and above its trading level of 120.25 yen in New York overnight. In New York stock trading, investors were left with little direction amid fears of terrorism and a possible war with Iraq. Federal Reserve Chairman Alan Greenspan highlighted both the strengths and the weakness in the U.S. economy in congressional testimony, which left investors unsure whether to buy or sell.
While the Dow Jones industrials and Nasdaq composite index managed to end the session higher, the Standard & Poor's 500 index fell. The Dow closed up 12.49, or 0.2 percent, at 8,398.49. The Nasdaq rose 11.78, or 0.9 percent, to 1,361.34. But the S&P 500 index slipped 0.42, or 0.05 percent, to 882.53. The Tokyo Stock Price Index of all issues on the first section of the Tokyo Stock Exchange closed the morning down 2.26 points, or 0.27 percent, at 834.17 points Thursday. The Topix ended down 3.19 points, or 0.38 percent, at 836.43 points Wednesday. Major banks including UFJ, Mizuho Holdings, and Mitsubishi Tokyo Financial Group fell sharply in morning trade.
The yield on the benchmark 10-year government bond rose to 0.9750 percent in morning trading, from 0.9500 percent late Wednesday. Its price was down 0.22 at 101.34. The euro traded at 121.15 yen Thursday morning, up from 120.80 yen late Wednesday. Against the dollar, the euro was at 100.70 cents, down from 100.90 cents late Wednesday//www.nj.com