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Tokyo shares finish firm
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February 16, 1999: 5:41 a.m. ET
Japan's reversal on monetary policy helps banks push Nikkei higher
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LONDON (CNNfn) - Banks again led the way in Tokyo in relatively thin trading as the market made gains on the back of an abrupt about-face in government policy. The finance ministry says it will reduce the issuance in the government bond market and allow the yen to weaken.
The two other main Asian markets, Hong Kong and Singapore, were closed for the Chinese New Year.
In Tokyo, shares lost some of their initial impetus from the news that the government would act to relieve mounting economic pressures, with the Nikkei 225 closing up 1.27 percent at 14,232.64. The benchmark index was up as much as 2 percent in light, early morning trading.
Banks again led the way after the Ministry of Finance said it would cut the monthly volume of Japanese government bonds (JGBs) it plans to issue. Fears of a glut in the JGB market had pushed yields up as high as 2.44 percent.
The benchmark 10-year bond yield fell as low as 1.86 percent Tuesday, compared to 2.14 percent Monday. A senior Japanese finance official also signaled that the government planned to let the yen fall in line with the interest rate cut announced last Friday.
Banking stocks moved higher on the news, although continued speculation about consolidation in the sector also contributed. Bank Tokyo-Mitsubishi was up 1.53 percent at 1,391 yen, while Sanwa Bank was up 1.32 percent at 1,150 yen. Bank of Yokohama put on a spurt of 5.26 percent after it admitted it was considering various options for a possible tie-up. The shares were trading around 240 yen.
The falling yen also lent support to exporters, with Sony Corp. up 2.38 percent at 8,600 yen. Honda Motor closed up 3.24 percent, as global consolidation in the auto industry continued to influence investor sentiment. Elsewhere in the market, drug manufacturer Teikoku Hormone put on its third consecutive day's maximum gain, rising 11.11 percent to 1,000 yen.
In Sydney, the All Ordinaries index ended the day down just 0.64 percent at 2,859.4 as the closure of Wall Street Monday for the President's Day holiday left the market directionless. Even the quarterly economic statement from the central bank failed to make any impact on the market.
In the other markets that were open Tuesday, the Manila Composite index ended the day up 0.45 percent at 1,918.87.
Bangkok finished up 1.57 percent at 350.36, led by a rally in the banking sector, while Jakarta's leading shares were up 0.48 percent at 398.848. 
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