July 10 (Bloomberg) -- Japan’s Topix index dropped for an eighth day after swinging between gains and losses more than 25 times. Shipping lines led declines on concern a global slump will curb international trade.

Kawasaki Kisen Kaisha Ltd., the country’s third-biggest shipping line by sales, tumbled 3.9 percent, while Nippon Yusen K.K., the No. 1, slid 3.3 percent. An index of bulk cargo fees fell for a seventh day, and the Nikkei newspaper said container rates between Asia and North America are being cut. Chip equipment maker Tokyo Electron Ltd. rose 0.7 percent after orders nearly doubled last quarter.

The Topix fell 1.41, or 0.2 percent, to 872.50 at the close of trading in Tokyo, reversing gains of as much as 0.7 percent. That was the gauge’s eighth consecutive decline and the longest streak of losses since July 2008. Still, more shares rose than retreated on the benchmark. The Nikkei 225 Stock Average slipped 3.78 to 9,287.28.

“The equity market was rising too fast, so now we are going through a healthy correction,” said Masayuki Kubota, a senior fund manager in Tokyo at Daiwa SB Investments Ltd., which oversees the equivalent of $37 billion in assets. “I’m focusing on early signals of an economic rebound such as production and inventory levels, and they are improving, especially in Japan.”

The Nikkei slumped 5.4 percent this week, while the Topix declined 5.2 percent, the worst performance for both benchmarks since January. The Topix has lost 8.2 percent since June 12. The gauge soared as much as 36 percent from a more than quarter- century low in March.

Shipping Rates

Volume on the main board of the Tokyo Stock Exchange was about a 10th below the average for 2009, in spite of the settlement of Nikkei 225 options contracts, which prompts transactions in addition to normal trading.

The Baltic Dry Index, a gauge of commodity shipping rates, fell 2.9 percent yesterday, its seventh-straight drop. Also, rates on container ships between North America and Asia were cut by between 20 percent and 40 percent, the first reduction in three years, the Nikkei newspaper reported, citing sluggish demand.

Kawasaki Kisen tumbled 3.9 percent to 348 yen. Nippon Yusen slid 3.3 percent to 380 yen. Mitsui O.S.K. Lines Ltd., the world’s largest merchant fleet operator, declined 2.9 percent to 542 yen.

Tokyo Electron added 0.7 percent to 4,270 yen. The world’s second-largest supplier of semiconductor production equipment said yesterday orders rose 82 percent last quarter to 49 billion yen ($527 million).

Yosano Bullish

Kuraray Co., a synthetic fiber producer, gained 3.1 percent to 1,071 yen. The company will likely post a 9 billion yen operating profit for the six months ending in September, 1 billion yen more than its current forecast as capacity use has increased, the Nikkei said.

Shoe retailer ABC-Mart Inc. advanced 2.2 percent to 2,565 yen. Yesterday, it said net income gained 7.9 percent in the first-quarter on a 10 percent increase in sales.

“I’m confident stocks will eventually rise,” Japan’s Finance Minister Kaoru Yosano said at a press briefing today.

Asahi Glass Co., the maker of glass substrates for flat- display panels, rose 1.4 percent to 727 yen. JSR Corp., a maker of film for panels, jumped 4.7 percent to 1,706 yen.

Yoshie Nakao, an analyst at KBC Securities Co., said the liquid-crystal display television market is recovering faster than expected due to government subsidies.

Sapporo Holdings

Sapporo Holdings Ltd., Japan’s No. 4 brewer, surged 4.8 percent after saying shipments of beer and similar beverages rose 0.4 percent in the first six months of the year.

Tokyo will conduct metropolitan elections Sunday, which some investors are looking to for cues on the political outlook ahead of national elections that must be called by September.

“Without some new developments the market will not be able to break into higher territory,” said Hiroshi Chano, a manager at Meiji Yasuda Life Insurance Co., which handles $260 billion in assets. “It’s tough to get a read on this market because people are wondering about what’s going to happen with the national elections and an earnings recovery has already been priced into shares.”

To contact the reporter for this story: Patrick Rial in Tokyo at prial@bloomberg.net; Kotaro Tsunetomi in Tokyo at ktsunetomi@bloomberg.net.

Last Updated: July 10, 2009 03:27 EDT