Japan Stocks Drop, Extend Monthly Fall, on Euro Concern
(Corrects number of days stocks rose in first paragraph.)
Japanese stocks fell for the first time in four days as concern grew that European leaders may struggle to revive growth. Shipping companies slipped before reporting earnings today.
Makita Corp., a maker of power tools that generates 42 percent of sales in Europe, slid 1.1 percent. Nippon Yusen K.K. (9101), Japan’s largest shipping line, fell 1.7 percent. Canon Inc. (7751) soared 3.9 percent after saying it will spend 50 billion yen ($640 million) to buy back shares.
The Nikkei 225 Stock Average (NKY) lost 0.3 percent to 8,610.10 as of 9:20 a.m in Tokyo, heading for a 4.4 percent loss this month. The broader Topix Index (TPX) today retreated 0.1 percent to 731.29. Both gauges rallied for the past three days on optimism European Central Bank President Mario Draghi will announce measures this week to combat the sovereign-debt crisis.
“My concern is that there will be a lot of implementation risks to any package that is announced,” said Belinda Allen, senior investment analyst at Colonial First State Global Asset Management in Sydney, which oversees about $145 billion. “It’s hard to be 100 percent certain that this will be the big bazooka that Europe needs.”
Shares fell even as Japan’s jobless rate unexpectedly declined in June to 4.3 percent, beating analyst expectations that unemployment would remain flat at 4.4 percent.
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