Japan Stocks Decline, Cap 5th Weekly Drop, on Surge in Crude

By Makiko Kitamura and Masaki Kondo

July 11 (Bloomberg) -- Japan's stocks fell, capping a fifth- straight weekly decline, after the steepest jump in crude prices in a month raised concern earnings at automakers will fall.

Toyota Motor Corp., Japan's largest automaker, and Nissan Motor Co. fell to the lowest in almost three months. Inpex Holdings Inc., Japan's biggest oil explorer, gained for the first time in four days, while Mizuho Financial Group Inc. rallied on a newspaper report regulators may take over the biggest U.S. mortgage lenders.

The Nikkei 225 Stock Average sank 27.52, or 0.2 percent, to close at 13,039.69, capping a 1.5 percent drop this week. The broader Topix index dropped 4.85, or 0.4 percent, to 1,285.91, falling 0.9 percent in the past five days.

``Auto sales are plummeting in the U.S. and in Japan because of rising oil prices,'' said Yoku Ihara, head of equity research at Tokyo-based Retela Crea Securities Co. ``Trains are packed, and bicycle sales seem to be rising.''

Crude oil for August delivery rose 4.1 percent yesterday, the most since June 6, as Brazilian oil workers threatened a strike and on rising concern supplies from the Middle East and Nigeria may be disrupted.

To contact the reporter for this story: Makiko Kitamura in Tokyo at mkitamura1@bloomberg.net; Masaki Kondo in Tokyo at mkondo3@bloomberg.net.
Last Updated: July 11, 2008 02:18 EDT