3 October 2005, 12:27  Japanese stocks fall in morning trading

Japanese stocks fell Monday morning after lackluster results from a quarterly corporate confidence survey triggered selling. The dollar was higher against the yen. The Nikkei 225 index fell 49.02 points, or 0.36 percent, to finish at 13,525.28 points on the Tokyo Stock Exchange. The index lost 42.94 points, or 0.3 percent, Friday. The broader TOPIX index, which includes all issues on the exchange's first section, dropped 1 point, or 0.07 percent, to 1,411.28. Shares declined after the Bank of Japan released results from a survey showing business sentiment had not improved as much as had been expected. The September tankan index, which measures large manufacturers' business conditions, rose one point from last quarter to 19, below the 20 expected on average by economists. In June, the tankan index rose four points from March to 18, beating economists' expectations of 15. The survey showed large companies plan to boost their business investment by 9.3 percent this fiscal year, below the 10.3 percent increase forecast by economists. The June survey showed a 9.4 percent increase in planned investment. Banks fell on profit-taking after recent gains, while airlines were weaker in the aftermath of the terrorist bombings in Bali on Saturday, which killed 26 and spread fears of a collapse of tourism on the Indonesian holiday island. Precision manufacturing and telecoms were among the few sectors that gained in the morning sell-off. Traders also said technology stocks were benefiting from the tankan survey, which said these sectors were beginning to pick up. In currency trading, the dollar rose to its highest level since May 2004, to 114.18 yen, on the Tokyo foreign exchange market at 11 a.m. (0200 GMT) Monday. But it slid to 113.98 yen on the Tokyo foreign exchange market by 3 p.m. (0600 GMT) Monday, still up 0.70 yen from late Friday and above the 113.60 yen it bought later that day in New York. The euro fell to 1.9457 from 1.2028 late Friday, a two-month low. The yield on the 10-year Japanese government bond rose to 1.5000 from Friday's finish of 1.4750. Its price fell 0.21 to 99.13

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