Economic Calendar

Wednesday, June 25, 2008

Japan Stocks Fall as Developer Default Sparks Financial Concern

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By Masaki Kondo

June 25 (Bloomberg) -- Japan's stocks fell, sending the benchmark index to its longest losing streak this year, on mounting doubts about the financial health of developers and consumer-finance companies.


Mitsui Fudosan Co. sent real-estate companies lower after a smaller rival filed for bankruptcy, while consumer lender Aiful Corp. tumbled to the lowest in a decade. Mazda Motor Corp., which exports 80 percent of domestic production, dropped on signs the U.S. economy is slowing.

``We may see more condominium developers go under as falling wages reduce demand, forcing builders to cut prices,'' said Naoki Fujiwara, who oversees the equivalent of $720 million as chief fund manager at Shinkin Asset Management Co. ``Non-performing loans are certainly on the rise among consumer lenders.''

The Nikkei 225 Stock Average sank 19.64, or 0.1 percent, to close at 13,829.92 in Tokyo, extending its drop to a fifth day. The broader Topix index fell 3.11, or 0.2 percent, to 1,346.08.

To contact the reporter for this story: Masaki Kondo in Tokyo at mkondo3@bloomberg.net.




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