7 July 2005, 12:11  Japanese stocks fall on surging oil prices

Japanese stocks fell Thursday as oil prices surged to new highs in Asian trading, sparking renewed concerns about the vulnerability of resource-poor Japan. The dollar rose against the yen and the euro. The Nikkei 225 index fell 13.39 points, or 0.12 percent to 11,590.14 points on the Tokyo Stock Exchange on Thursday. The index lost 13.17 points, or 0.11 percent, Wednesday. Crude oil futures trading in Singapore rose to new records early afternoon Thursday with light, sweet crude for August delivery gaining 35 cents to $61.63 a barrel on the New York Mercantile Exchange. Traders sold stocks that are particularly sensitive to swings in spending and economic growth such retailers and food makers. Retailers Seven-Eleven Japan Co., Ltd. and Isetan Co., Ltd. and food maker Nippon Meat Packers, Inc. were among the decliners. But the Nikkei's losses were modest as the dollar continued to rise against the yen prompting traders to buy exporter issues. A stronger dollar boosts exporters' overseas profits when converted back to yen. The broader TOPIX index fell 3.41 points, or 0.29 percent, to 1,180.22 points. The TOPIX gained 0.22 points, or 0.02 percent, the day before. On Wednesday in New York, the Dow Jones industrial average fell 101.12, or 0.98 percent, to 10,270.68. The Nasdaq composite index lost 10.10, or 0.49 percent, to 2,068.65. In currency trading in Tokyo, the dollar rose to 112.24 yen on the Tokyo foreign exchange market at 3 p.m. Thursday, up 0.60 yen from late Wednesday, and above the 112.18 yen it bought in New York later that day. The euro fell to $1.1922 from $1.1942 late Wednesday. The 10-year Japanese government bond fell to 1.2250 percent from Wednesday's finish of 1.2450 percent. Its price rose 0.17 to 99.77 points.

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