Japanese Stocks Drop on Concern Europe Crisis Spreading to Italy
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Japanese stocks fell, driving the Nikkei 225 Stock Average down for the first time in three days, after Standard & Poor’s downgrade of Italy’s credit rating reinforced concern Europe’s debt crisis is spreading.
Sony Corp., which depends on the region for 20 percent of its sales, dropped 4.1 percent as a slide in the euro cut its earnings outlook. Mitsubishi UFJ Financial Group Inc., Japan’s biggest lender by market value, declined 2.9 percent on concern Europe’s debt crisis will spill into the banking system. Tokyo Electric Power Co. plunged 8.1 percent after Kyodo News reported the utility will shelve a plan to raise power rates.