Japan Stocks Decline on Shrinking European Manufacturing

Japanese shares fell, with the Nikkei 225 Stock Average falling by the most in two months, after European manufacturing shrank more than economists forecast, dimming the outlook for global economic growth.

Honda Motor Co. sank 2.9 percent after gains in the yen damped the earnings outlook for the carmaker, which gets almost 85 percent of its sales abroad. Daiwa Securities Group Inc., Japan’s second-biggest brokerage, slipped 1.8 percent after jumping by more than a third this year. Stadium operator Tokyo Dome Corp. jumped 5.1 percent after Mitsubishi UFJ Morgan Stanley Securities Co. raised its target price.