Nikkei Stocks in 3rd Largest Surge

Share prices soared for the second consecutive day on the Tokyo Stock Exchange today as the dollar declined sharply against the yen.

The 225-issue Nikkei Stock Average rose 1,439.59 points, or 5.4%, closing at 28,112.12. It was the third largest single-day gain for the market’s main indicator.

The Nikkei’s upsurge resulted from the yen’s sharp rise against the dollar as well as from growing stability in other markets such as bonds and oil, said a trader with Nomura Securities Co.

The dollar ended trading at 147.85 yen, down 2.05 yen from Tuesday’s finish.

“The Middle East crisis has heavily influenced the market’s movement, but the key is economic stability,” the Nomura trader said.

The Nikkei won back 496.10 points on Tuesday after a 1,153.12-point loss on Monday following Prime Minister Toshiki Kaifu’s cancellation of a planned trip to the Middle East due to the worsening Persian Gulf crisis.