Nikkei share index makes gains
The Nikkei 225 index has closed at 10,697.44, up 41.48 points.
The dollar was at 123.98 yen in Tokyo trading, up from 123.78 in late New York trade; and at 0.8862 against the euro, compared with 0.8877 in New York.
Dealers say the US currency rose against the yen on overnight short-covering, spurred in part by speculation that Japanese firms are heavily exposed to collapsed US energy giant Enron.
But Kosuke Hanao, Royal Bank of Scotland's head of foreign exchange sales, suggests the rumours related to Enron are simply an excuse to sell off the yen - noting that the dollar also rose against the euro and Swiss franc.
Government bond yields were mixed, with the no 234 issue yielding 1.35% , down from 1.36% yesterday; and the no 235 issue at 1.385%, up from 1.38%.
The US 30-year bond was at 101-29/32, yielding 5.245%, compared with 101-23/32, yielding 5.26%, in late New York trading.
