Nikkei gains as dollar rises on Geithner comment

TOKYO, Oct 21 (BestGrowthStock) – Japan’s Nikkei rose 0.2 percent on
Thursday, bouncing back from an early loss after the dollar
jumped against the yen on comments by U.S. Treasury Secretary Tim
Geithner. [ID:nSGE69K016]

In an interview published by the Wall Street Journal on
Thursday, Geithner suggested that he saw no need for the dollar
to sink further against the euro and the yen, saying major
currencies were roughly in alignment now.

The interview boosted the dollar and pulled the benchmark
Nikkei (.N225: ) stock average out of negative territory, where it
had been weighed down as the yen held near a 15-year high against
the U.S. currency.

“The Nikkei rebounded strongly after the dollar jumped
against the yen on Geithner’s comments,” said Takashi Ohba,
senior strategist at Okasan Securities.

“This could have prompted active short-covering by foreign
players who were detected selling Nikkei futures heavily the
previous day.”

By the midday break, the Nikkei was up 18.91 points at
9,400.51, after falling as low as 9,326.78, while the broader
Topix (.TOPX: ) was down 0.4 percent at 820.64.

Market players were awaiting Chinese economic data releases
and the reaction of Chinese stock and commodity prices for
further cues on the direction of trade.

After the morning close in Tokyo, China said its annual gross
domestic product growth slowed to 9.6 percent in the third
quarter from 10.3 percent in the second quarter. Economists had
forcast third-quarter growth of 9.5 percent. [ID:nBJL002077]
[ID:nTOE69D042]
(Reporting by Chikafumi Hodo and Aiko Hayashi; Editing by Edmund
Klamann)

Nikkei gains as dollar rises on Geithner comment