Japan Stocks Fall


Japan's stocks declined for a second day after developer Sohken Homes Co. filed for bankruptcy, sparking concern consumers are holding back on purchases as the economy slows.

Sumitomo Realty & Development Co., Japan's third-biggest developer, slumped 2.9 percent while Sohken tumbled by its daily limit. Nissan Motor Co., Japan's third-largest automaker, dropped 4.7 percent after Morgan Stanley cut its price target. Nippon Paper Group Inc. led a gauge of papermakers to the biggest gain in three weeks as investors flocked to companies whose earnings are relatively resilient against an economic slowdown.

The Nikkei 225 Stock Average dropped 25.75, or 0.2 percent, to close at 12,752.96 in Tokyo. The broader Topix index retreated 5.66, or 0.5 percent, to 1,223.69. More than two stocks declined for each that rose on the Topix. The trading value on the Tokyo Stock Exchange fell to the lowest for a full day since July 2005.

Bankruptcies among Japanese property companies more than doubled to 60 in July from a year earlier, according to Tokyo Shoko Research Ltd. Monthly wages in Japan rose in June at the slowest pace since November, the Labor Ministry said on Aug. 18. Meanwhile, consumer-price inflation in July probably surpassed 2 percent for the first time in a decade, according to the median estimate of 37 economists.


TradingEconomics.com, Bloomberg
8/27/2008 5:31:05 AM