Dow Jumps 36.26 After Tokyo Prices Rebound

Stock prices rose sharply and broadly today, boosted by a rebound in the Tokyo market and firm bond prices.

The Dow Jones average of 30 industrials rose 36.26 to 2,736.71.

Advancing issues outnumbered declining ones by more than 2 to 1 on the New York Stock Exchange, with 1,065 up, 419 down and 478 unchanged.

Big Board volume totaled 154.31 million shares, against 124.36 million in the previous session.

The NYSE’s composite index rose 2.47 to 188.55.

At the American Stock Exchange, the market value index rose 2.28 to 361.65.

Prices on the Tokyo Stock Exchange jumped today in nervous, roller-coaster trading. The 225-issue Nikkei Stock Average gained 757.65 points, or 2.7%, ending the day’s session at 28,757.65.

On Monday, Tokyo stock prices plummeted 6.6% in their second-worst fall this year. The selloff initially spilled over to Wall Street, where the Dow Jones average slipped as much as 30 points in early trading before firming to close 6.76 points lower at 2,700.45.

Analysts say the link between the Tokyo and New York markets is not as strong as once believed. They also say most of the trouble on the Japanese exchange is due to domestic concerns, including interest-rate worries and a belief that stocks are overpriced compared to earnings.

Hugh Johnson, chief investment officer at First Albany Corp., said the U.S. market today was encouraged by three factors: the Dow’s rebound Monday, the firming in Tokyo prices and a stable bond market. Treasury bond prices were mixed in a narrow range today.

Johnson said the recovery Monday in New York suggests “that our markets continue to manage the declines in Tokyo pretty easily.”

Bond prices posted minor gains in light early trading today after a new economic report for February failed to inspire much buying or selling enthusiasm in the credit markets.

Analysts said bonds were expected to trade in a narrow range, at least until Friday, when the government releases the March unemployment report. It will offer the first glimpse of economic conditions last month.

The benchmark 30-year Treasury bond gained 1/8 point, or $1.25 for every $1,000 in face value. Its yield, which falls when prices rise, edged down to 8.61% from 8.62% late Monday.

“The market is pretty much in a range-bound trading environment,” said Kevin Flanagan, a money market economist at Dean Witter Reynolds Inc. “I think we’re pretty much stuck until Friday.”

In the secondary market for Treasury securities, prices of short-term government issues were up 1/32 point to 3/32 point, intermediate maturities added 1/32 point to 1/16 point, and long-term issues advanced 1/8 point to 5/32 point, according to figures provided by Telerate Inc., a financial information service.