July 13 (Bloomberg) -- Japanese stocks fell for a ninth day as Prime Minister Taro Aso’s plan to dissolve parliament sparked concern political turmoil will hurt the economy. Electronics and car makers were hit by falling U.S. consumer confidence.

Sony Corp., which earns almost a quarter of its sales in the U.S., lost 2.9 percent. Mazda Motor Corp., which derives 75 percent of its revenue from abroad, dropped 6 percent. Mitsui Mining & Smelting Co., Japan’s largest zinc smelter, plunged 6.8 percent after metals prices fell. Kirin Holdings Co., Japan’s No. 2 brewery, surged 7.8 percent, leading food shares higher after a newspaper reported it may merge with Suntory Holdings Ltd.

The Nikkei 225 Stock Average lost 236.95, or 2.6 percent, to close at 9,050.33 in Tokyo. The Topix index fell 20.08, or 2.3 percent, to 852.42, extending its decline to a ninth day, the longest stretch since September 2004. The opposition Democratic Party of Japan beat Aso’s Liberal Democratic Party in Tokyo assembly elections yesterday.

“Investors are worried about whether the DPJ, which is critical of bureaucrats, can control them. If the government malfunctions, it’ll damage the economy,” said Tomokatsu Mori, chief fund manager at Fukoku Capital Management Inc., which manages about $11 billion. “The fundamentals of the global economy are like a patient who’s just been discharged from the hospital.”

Stocks widened losses in the afternoon after Shuzen Tanigawa, a ruling Liberal Democratic Party legislator, told reporters that Aso agreed to dissolve Japan’s parliament on July 21 and call national elections. The DPJ’s triumph in yesterday’s elections boosts prospects for the DPJ before lower-house elections that will be held Aug. 30. The party already controls the upper house of parliament.

Thin Trading

“Investors are still digesting a slew of political news. If the opposition wins the majority of the lower house, the upside is that we can expect more consistent policies,” said Yoshinori Nagano, a senior strategist at Tokyo-based Daiwa Asset Management Co., which oversees the equivalent of $90 billion. “The downside is that the DPJ’s policies don’t look very favorable for large enterprises.”

The value of stocks traded in Tokyo in the seven sessions to today was almost a fifth lower than the one-year average. Weaker-than-expected machinery orders, a stronger yen and falling shipping fees fanned concern a rebound will be delayed, sending investors to the sidelines.

Sony, maker of the Vaio personal computer, slid 2.9 percent to 2,165 yen, while Mazda plummeted 6 percent to 203 yen. Komatsu Ltd., a machinery maker that derives almost a quarter of its revenue from the Americas, sank 3.1 percent.

Merger Talks

In New York, the Standard & Poor’s 500 Index slid 0.4 percent after the Reuters/University of Michigan preliminary index of consumer sentiment slid to 64.6 in July from the prior month. Economists had estimated the gauge would fall to 70.

Mitsui Mining plunged 6.8 percent to 205 yen, the lowest close since May 22. Sumitomo Metal Mining Co., the nation’s largest nickel producer, slid 4.6 percent to 1,172 yen. A gauge of six metals in London dropped 1.3 percent on July 10, posting a weekly loss of 3.9 percent, the most since the five days ended April 24.

Kirin jumped 7.8 percent to 1,392 yen. The company and privately held Suntory are in merger talks, the Nikkei newspaper reported today. The companies declined to confirm or deny whether they were discussing a merger.

Beverage maker Sapporo Holdings Ltd. surged 6.1 percent, making it the second-biggest winner on the MSCI World Index, after Kirin. Asahi Breweries Ltd. added 2.5 percent.

Nikkei futures expiring in September sank 2.3 percent to 9,040 in Osaka and Singapore.

To contact the reporter for this story: Masaki Kondo in Tokyo at mkondo3@bloomberg.net; Toshiro Hasegawa in Tokyo at thasegawa6@bloomberg.net.

Last Updated: July 13, 2009 03:07 EDT