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Topix Falls Eighth Day as Yen Gains on U.S. Impasse

Japanese shares fell, with the Topix (TPX) index extending its longest drop since July 2012, as the yen gained amid the deadlock over raising the U.S. debt limit to avoid a default.

Sony Corp. (6758), which gets almost 70 percent of revenue from outside Japan, slumped 2.9 percent. Yahoo Japan Corp. tumbled 8.7 percent after saying it would scrap vendor fees for its shopping and auction websites, while rival Rakuten Inc. plunged 19 percent. Oki Electric Industry Co., which makes semiconductors and automated teller machines, jumped 7.4 percent after a report it would post an unexpected first-half profit.

The Topix lost 0.4 percent to 1,143.11 as of 9:27 a.m. in Tokyo, headed for an eighth day of declines. The Nikkei 225 Stock Average dropped 0.3 percent to 13,805.75. The yen traded at 96.76 per dollar after rising 0.8 percent yesterday.

“Japanese shares are getting hit with a double-whammy as the U.S. problems channel through to the yen,” said Toshihiko Matsuno, a strategist at Tokyo-based SMBC Friend Securities Co., a unit of Sumitomo Mitsui Financial Group Inc., Japan’s second-biggest lender by market value. “We’re seeing a lack of buying because of uncertainty, and investors are also selling to hedge their risks.”

To contact the reporters on this story: Anna Kitanaka in Tokyo at akitanaka@bloomberg.net; Masaaki Iwamoto in Tokyo at miwamoto4@bloomberg.net

To contact the editor responsible for this story: Sarah McDonald at smcdonald23@bloomberg.net

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