By Patrick Rial and Masaki Kondo
July 29 (Bloomberg) -- Japan stocks fell to the lowest in a week on concern credit-market losses will accelerate, while surging energy costs erode earnings and spending.
Nomura Holdings Inc., Japan's biggest brokerage, sank to a near two-week low after Merrill Lynch & Co. announced more writedowns and the International Monetary Fund said there's no end in sight to the U.S. housing slump. Toyota Motor Corp. dropped after cutting its sales forecast, while parts affiliate Aisin Seiki Co. plunged the most in six months. Mitsui O.S.K. Lines Ltd. led shipping lines lower after cargo rates for commodities fell a 12th straight day.
``Banks and consumers overextended themselves in the housing bubble and now that is coming back to bite them in the form of non-performing assets and reduced spending,'' said Takashi Kamiya, who helps oversee $16 billion as chief economist at T&D Asset Management Co. in Tokyo.
The Nikkei 225 Stock Average declined 194.33, or 1.5 percent, to close at 13,159.45 in Tokyo. The broader Topix index slipped 19.15, or 1.5 percent, to 1,281.64. About four stocks fell for each that gained on the Topix, and both gauges retreated to the lowest since July 18.
To contact the reporters for this story: Patrick Rial in Tokyo at prial@bloomberg.net; Masaki Kondo in Tokyo at mkondo3@bloomberg.net.
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