Jan. 4 (Bloomberg) -- Kawasaki Kisen Kaisha Ltd. fell to the lowest in almost a year, leading Japanese shipping lines lower as a drop in an index of prices for shipping goods added to a decline from a slump in global stocks.

Kawasaki Kisen, the country's third-largest shipping line by sales, closed down 7.1 percent at 1,020 yen as of the end of trading today on the Tokyo Stock Exchange. It earlier fell to 1,000 yen, the lowest since Jan. 24. The Nikkei 225 Stock Average slumped 4 percent, its biggest drop since August and the first decline on an initial trading day of the year since 2001.

The Baltic Dry Index, a benchmark for the price of shipping bulk commodities, slumped to the lowest in more than three months yesterday as Chinese steelmakers scaled back iron-ore imports, the biggest raw material shipped by sea. Kawasaki Kisen, Mitsui O.S.K. and Nippon Yusen all raised their full-year profit forecasts in October due to increasing Chinese demand.

``The slump in global stocks is dragging shares down,'' said Takahiko Kishi, an analyst in Tokyo at Mizuho Investors Securities Co. ``The Baltic index decline is adding to that drop.''

Nippon Yusen K.K., the largest shipping line, declined 6.3 percent to 832 yen and Mitsui O.S.K. Lines Ltd., the second- largest, fell 5.4 percent to 1,349 yen.

The index fell 1.5 percent yesterday, its ninth day of declines to 8,756, according to the London-based Baltic Exchange.

To contact the reporters on this story: Chris Cooper in Tokyo at ccooper1@bloomberg.net

Last Updated: January 3, 2008 21:54 EST