STOCKS : Market Ignores Tokyo Decline; Dow Rises 14.41

U.S. shares rebounded Monday in an impressive afternoon rally, shrugging off a steep decline in the Tokyo stock market to extend their recent advance.

The Dow Jones index of 30 industrials finished 14.41 points higher at 2,755.63, after hovering in negative territory most of the day. The blue chip barometer had been down as much as 28 points earlier in the trading session.

Advancing issues edged out declining ones in nationwide trading of New York Stock Exchange-listed stocks, with 730 up, 700 down and 533 unchanged.

Analysts said Wall Street was buoyed by positive market sentiment and continued strength in the dollar.

In Japan on Monday, anxiety about a possible interest rate hike and the yen’s decline against the dollar sent the key index on the Tokyo Stock Exchange plummeting to a 14-month low.

Analysts said some stocks in New York were helped Monday by news that UAL Corp.’s unions and biggest shareholder have mounted a joint effort to install new directors in a shareholder proxy fight and buy the airline company for around $3.8 billion, or more than $175 a share.

Five months ago, the collapse of a debt-financed offer for UAL, parent of United Airlines, touched off a major tumble in the stock market and raised the first big doubts about the future of the corporate takeover craze of the 1980s.

The Dow index plunged 190 points last Oct. 13, the day the $300-a-share offer collapsed.

UAL stock closed Monday at 154 1/2 a share, up 12 from Friday’s close.

In London, stocks closed lower after Tokyo’s plunge and losses were exaggerated by thin volume. Traders said investors were holding back ahead of today’s annual British budget announcement. The Financial Times index of 100 stocks ended 25.9 points down at 2,238.0.

CURRENCY: Dollar Closes Mixed as Mark Dominates

The dollar turned in a mixed performance against other major currencies Monday in trading dominated by the West German mark.

Gold prices posted minor gains in domestic and overseas dealings.

Republic National Bank of New York quoted a bid of $400.80 for an ounce of gold as of 4 p.m. EST, up 80 cents from Friday’s late bid. On New York’s Commodity Exchange, gold for March delivery settled at $400.70 an ounce, $1.10 higher than Friday.

Currency dealers said the support for conservative parties in Sunday’s general election in East Germany sparked interest in buying West German marks.

As trading ended in New York, the dollar was quoted at 1.6860 West German marks, down from 1.6980 marks Friday.

The dollar gained against the Japanese yen, however, as dealers grew impatient waiting for the Tokyo government to raise the country’s key interest rates, which has been expected for weeks.

One dollar bought 153.05 yen late in New York, up from 152.65 yen late Friday.

CREDIT: Bonds End Session With Scant Change

Bond prices finished narrowly mixed Monday as short-term issues posted small declines and longer-term securities advanced.

The benchmark 30-year Treasury bond added 1/16 point, or 60 cents per $1,000 face amount. Its yield, which falls when prices rise, fell to 8.53% from 8.54%.

The federal funds rate, the interest rate banks charge each other on overnight loans, was quoted at 8.1875%, the same as late Friday.

COMMODITIES: Soybeans Jump on Brazil Expectations

Soybean futures prices rose sharply Monday on the Chicago Board of Trade amid talk of lower-than-expected Brazilian yields and diminishing fears that Brazil’s economic reforms will lead to a flood of soybean marketings.

On other commodity markets, coffee, sugar and cocoa futures fell sharply; livestock and meat futures advanced; petroleum futures were mixed, and precious metals were higher.

Soybean futures settled 6 to 8 1/4 cents higher, with March at $5.90 a bushel.