28 June 2005, 15:49  Japanese stocks rebound, dollar higher

Japan's key stock index rose Tuesday, as investors bought construction issues Shimizu and Kobe Steel, which had suffered big losses in the recent market downturn. The dollar climbed against the yen and euro. The Nikkei 225 Index added 99.55 points, or 0.87 percent, to 11,513.83 points. The index fell 122.75 points, or 1.06 percent, Monday. Technology shares and automakers Toyota Motor, Nissan Motor and Honda Motor initially led the gains, with investors focusing on the dollar rebound and ignoring overnight declines on Wall Street. Investors often buy Japanese exporter stocks when the dollar strengthens against the yen because such a currency swing tends to make those companies' goods cheaper in other markets and boosts the value of their overseas revenues. Traders later bought raw materials issues such as steel, hopeful for positive news this week from Japan's closely watched quarterly "tankan" business sentiment survey.

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