Japan Stocks Swing From Gains, Losses on Honda Outlook

Japan’s two main stock indexes fell, reversing morning gains, as Honda Motor Co. plunged after cutting its annual profit forecast. The declines were limited on expectations the Bank of Japan will add stimulus at a policy meeting tomorrow.

Honda, Japan’s third-largest carmaker by revenue, sank 4.7 percent after reducing its outlook as Chinese consumers shun Japanese vehicles amid a territorial dispute between Asia’s two-biggest economies. NTT DoCoMo Inc., Japan’s top mobile-phone company, declined the most on the Nikkei 225 Stock Average after cutting its profit forecast. NEC Corp., a maker of wireless stations, jumped 5.7 percent after boosting second-quarter profit 38 percent on the sale of display panel-related patents and cost cuts.