Sept. 13 (Bloomberg) -- Japan's Topix index fell to the lowest level in almost four weeks. Canon Inc. led technology shares lower on concern record energy costs will curb consumer spending worldwide.

Lenders including Mitsubishi UFJ Financial Group Inc. declined after the Nikkei newspaper reported Japan's government will lower its assessment of the economy in September for the first time in 10 months.

Commodity-related stocks such as Mitsui & Co. rose after oil prices climbed.

``Domestic growth lacks momentum and rising oil prices have boosted fears over slowing U.S. consumption,'' said Masaki Iso, who oversees about $7.3 billion as head of Japanese equities at Yasuda Asset Management Co. in Tokyo. ``Commodity-related shares advanced because investors see them as the safest bet.''

The Topix index slipped 5.40, or 0.4 percent, to 1,522.87 at the close of trading in Tokyo, the lowest finish since Aug. 17. The Nikkei 225 Stock Average added 23.59, or 0.2 percent, to 15,821.19. Two shares declined for each one that advanced on the first section of the Tokyo Stock Exchange.

Drugmaker shares rose after the Nikkei newspaper reported the four largest companies in the industry are likely to spend more than 300 billion yen ($2.62 billion) on stock buybacks this year.

Canon, the world's largest seller of digital cameras, slumped 210 yen, or 3.5 percent, to 5,830. Sony Corp., the maker of the PlayStation 3 game console, lost 60 yen, or 1.1 percent, to 5,310. Toshiba Corp., the world's second-biggest maker of flash memory chips, tumbled 44 yen. or 4.4 percent, to 954.

Spending Effect?

Crude for October delivery rose to a record $80.18 per barrel yesterday in New York before closing 2.2 percent higher at $79.91. It was recently at $79.72.

The fallout from the subprime mortgage crisis has begun to seep into other parts of the U.S. economy. The number of non- farm payrolls unexpectedly fell last month, the government said on Sept. 7, the first decline since August 2003.

``We may not see an effect on consumer spending as the Christmas shopping season approaches, but the problem is that the outlook remains unclear,'' said Naoki Fujiwara, who helps oversee $3.24 billion at Shinkin Asset Management Co. in Tokyo.

The government will lower its assessment of Japan's economy for September to reflect weakness in certain sectors, from a previous view of weakness in industrial production, the Nikkei reported today. The outlook report will maintain that the country's economic recovery is continuing, the newspaper said.

Mitsubishi UFJ Financial, the country's biggest bank, lost 20,000 yen, or 2 percent, to 1 million . Sumitomo Mitsui Financial Group Inc., the third largest, slid 28,000 yen, or 3.4 percent, to 790,000, the lowest since August 2005. East Japan Railway Co., the country's biggest train operator, fell 21,000 yen, or 2.3 percent, to 888,000.

Buyback Spending

Mitsui, Japan's second-largest trading company, jumped 85 yen, or 3.6 percent, to 2,450. Mitsubishi Corp., which generates the second-biggest proportion of its sales from selling crude and industrial fuel, climbed 70 yen, or 2.2 percent, to 3,300. Inpex Holdings Inc., the nation's biggest oil explorer, gained 40,000 yen, or 3.5 percent, to 1.17 million.

Takeda Pharmaceutical Co., Japan's largest drugmaker, rose 150 yen, or 1.9 percent, to 7,980. Astellas Pharma Inc., the second biggest, advanced 140 yen, or 2.7 percent, to 5,340.

Takeda has already spent 130 billion yen this year on stock buybacks and may increase its total expenditure to beyond 213.5 billion yen, last year's total, the Nikkei said. Astellas has spent 43.1 billion yen, and that may rise to 100 billion yen, the report said.

Asics Recommendation

Kawasaki Heavy Industries Ltd. gained 5 yen, or 1.3 percent, to 404 after the Nikkei said the company will report a 37 percent increase in half-year operating profit, or sales minus the cost of goods sold and administrative expenses.

Asics Corp., a sports-shoe maker, jumped 62 yen, or 4.1 percent, to 1,564 after CLSA Ltd. said the stock is its top pick among Japanese consumer shares owing to strong demand growth related to the 2008 Beijing Olympics.

Nikkei futures expiring in September rose 0.1 percent to 15,800 in Osaka and fell 0.2 percent to 15,790 in Singapore.

Asics Corp. (7936 JT)
Astellas Pharma Inc. (4503 JT)
Canon Inc. (7751 JT)
East Japan Railway Co. (9020 JT)
Inpex Holdings Inc. (1605 JT)
Kawasaki Heavy Industries Ltd. (7012 JT)
Mitsubishi Corp. (8058 JT)
Mitsubishi UFJ Financial Group Inc. (8306 JT)
Mitsui & Co. (8031 JT)
Sony Corp. (6758 JT)
Sumitomo Mitsui Financial Group Inc. (8316 JT)
Takeda Pharmaceutical Co. (4502 JT)
Toshiba Corp. (6502 JT)

To contact the reporter on this story: Makiko Suzuki in Tokyo at msuzuki13@bloomberg.net; Patrick Rial in Tokyo at prial@bloomberg.net.

Last Updated: September 13, 2007 02:35 EDT