1 June 2005, 10:15  Tokyo stocks rebounded from early losses

Tokyo stocks rebounded from early losses Wednesday morning, as investors bought Matsushita Electric Industrial and other blue-chip technology shares. The dollar was higher against the Japanese yen and the euro. The Nikkei Stock Average of 225 selected issues had risen 11.56 points, or 0.10 percent, to 11,288.15 points at the midday break. On Tuesday, the index edged up 10.26 points for a four-day rally of 262.16 points, or 2.38 percent. Japanese shares took their cues from a pullback on Wall Street overnight, losing ground in the opening minutes. But shares bounced back as investors poured cash into tech blue chips such as Matsushita Electric Industrial and Yahoo! Japan, which rose on news it would work with two Japanese brokerages to add online stock trading services to its Web site, traders said. Japan's financial markets are susceptible to U.S. stock fluctuations because of the Japanese economy's reliance on U.S. growth to absorb Japanese exports. The broader TOPIX, which includes all issues on the Tokyo Stock Exchange's first section, was up 1.47 points, or 0.13 percent, to 1,145.80 points. The TOPIX gained 2.57 points, or 0.23 percent, the day before. In New York on Tuesday, surprisingly weak manufacturing data sent stocks mostly lower as investors feared that the economy has hit a soft patch. The Dow Jones industrial average fell 75.07, or 0.71 percent, to close at 10,467.48. The Nasdaq composite index fell 7.51, or 0.36 percent, to 2,068.22.

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