21 June 2005, 15:27  Japan stocks close higher, dollar higher

Japan's key stock index rebounded from an early slide to eke out gains Tuesday, with investors buying technology blue chips such as Kyocera that had lagged in the market's recent rally. The dollar rose against the yen and euro. After a brief dip at the open, the Nikkei 225 Index rose 12.57, or 0.11 percent, to 11,495.92 points on the Tokyo Stock Exchange. The index fell 30.68 points, or 0.27 percent, on Monday, following a six-day rally. But the broader market fell on losses in steel and oil sectors. The TOPIX index, which includes all issues on the Tokyo Stock Exchange's first section, lost 1.50 points, or 0.13 percent, to 1,169.15 points. Traders blamed the Nikkei's early losses on record-high oil prices, which stirred investor worries about Japanese exporters' rising costs and eroding profits. But Koichi Seki, sales manager at Chuo Securities, indicated that solid underlying support for Japanese stocks helped reverse that, saying there were "no sellers seeking to move the market lower." On the TSE's First Section, decliners outpaced advancers 808 to 678, while 163 issues were unchanged. Volume was estimated 1.229 billion shares, down from 1.521 billion shares Monday. The dollar was trading at 109.46 yen at 5 p.m. (0800 GMT) Tuesday, up 0.76 yen from late Monday and above the 109.33 yen it bought in New York later that day. The U.S. currency traded between 109.21 and 109.47 yen during the day.

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