OVERSEAS : Stock Market in Tokyo Regains Its Composure

Stock prices in Tokyo were slightly lower after an early surge this morning, one day after a hectic selloff that pushed the market’s key index to its lowest close in 15 months.

The U.S. dollar opened marginally lower against the Japanese yen and then rose.

The 225-share Nikkei stock index was down 90.57 points, or 0.30%, to 29,752.77 in morning trading. The index regained about 400 points shortly after the session began, but started falling within 40 minutes of trading.

Kazuyuki Suzuki, a dealer with Daiwa Securities Co., attributed the early recovery to the yen’s slight increase against the dollar in Tokyo, as well as to price stability of Japanese stocks traded overseas.

The Nikkei fell 963.85 points, or 3.13%, to 29,843.34 on Thursday, its lowest close since it ended at 29,741.28 on Dec. 24, 1988.

In foreign exchange, the dollar started trading at 154.75 yen, down 0.08 yen from Thursday’s close at 154.83 yen. The currency was changing hands at 155.05 yen in morning action.

Japan’s markets were closed Wednesday for a national holiday.

News reports that the Bank of Japan and the Finance Ministry began intervening in the stock and currency markets accelerated market players’ fears that the situation could seriously damage Japan’s economy.

Nihon Keizai Shimbun, Japan’s leading economic daily, reported today that the Finance Ministry has requested securities houses to limit certain activities in an attempt to prevent excessive market declines.

A Nomura Securities Co. dealer said selling was coming from institutional investors, which are attempting to minimize risks and reduce losses before the account settlement for fiscal 1989, which ends March 31.

The price of the benchmark No. 119 Japanese government bond was quoted this morning at 86.80 points, up from Thursday’s close at 86.54 points. Its yield was down to 7.180% from 7.235% the previous day.

A morning rush of sell orders Thursday met virtually no buy orders, sending the Nikkei down 1,836 points by the midday break, dealers said.

But the index rebounded in the afternoon as market players decided it had bottomed for the day after breaking the psychologically important 29,000-point barrier, said Hisao Yasuda, a dealer with Nikko Securities Co.