Around the World's Markets: Tokyo

Tuesday 22 September 1998 23:02 BST

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STOCKS REBOUNDED from a 12-year low on expectations that Prime Minister Keizo Obuchi will be pressured to promise more measures to lift the economy.

Drug makers and railways led the rally, as investors favoured "safe haven" industries. The Nikkei 225 index rose 1.42 per cent to 13,789.81.

Nomura Securities, Japan's largest brokerage, fell on reports it will have to inject $380m into a US affiliate. Three of Japan's big five chipmakers - Toshiba, Hitachi and NEC - have cut their earnings forecasts in the past month.

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