Japanese Stocks Drop on Growth Concern, Spanish Riots

Japanese stocks advanced, with the Topix Index rebounding from its steepest drop since May, after a report of declining Chinese industrial profits fanned bets policy makers will take steps to buoy Asia’s biggest economy.

Komatsu Ltd., a maker of construction equipment that gets almost 15 percent of its sales in China, rebounded 2.3 percent. Renesas Electronics Corp. added 1.3 percent after a report a government-backed fund may invest in the unprofitable chipmaker. Nikon Corp., a camera maker that gets a quarter of its revenue in Europe, slid 1.2 percent after riots in Spain fueled concern the region’s debt crisis may worsen.