Japan Stocks Fall, Sending Nikkei to Worst Streak in 43 Years

By Masaki Kondo and Makiko Kitamura

July 2 (Bloomberg) -- Japan stocks fell, bringing the Nikkei 225 Stock Average's losing streak to the longest in 43 years, after a decline in cargo fees drove down shipping companies.

Nippon Yusen K.K., Japan's largest shipper, and rival Kawasaki Kisen Kaisha Ltd. tumbled for the first time in three days. Isuzu Motors Ltd., the nation's biggest maker of light-duty trucks, led automakers lower after rising gasoline prices curbed demand in the U.S.

The Nikkei 225 Stock Average fell 81.37, or 0.6 percent, to 13,381.83 as of 9:48 a.m. in Tokyo, extending its decline to a 10th day, the longest losing streak since March 1965. The broader Topix index slumped 9.53, or 0.7 percent, to 1,310.54. All but three of 33 industry groups on the Topix fell.

The Baltic Dry Index, a measure of shipping costs for commodities, tumbled the most in a week on speculation Chinese iron-ore demand is weakening as prices rise.

Nippon Yusen sank 2.8 percent to 999 yen with Kawasaki Kisen falling 3 percent to 972 yen. Mitsui O.S.K. Lines Ltd. lost 2.1 percent to 1,462 yen. Shipping lines had the biggest drop among groups on the Topix.

Isuzu tumbled 2.6 percent to 496 yen, set for the lowest since May 12. Suzuki Motor Corp., Japan's No. 1 minicar maker, slumped 4.1 percent to 2,350 yen, and Daihatsu Motor Co. sank 2.1 percent. Automakers accounted 12 percent for the Topix's decline.

Isuzu's sales in the U.S. fell by almost half last month from a year earlier, while Suzuki had a 5.2 percent drop, according to the companies. The price of crude oil almost doubled in the past 12 months.

Nikkei futures expiring in September retreated 0.5 percent to 13,390 in Osaka and slumped 0.5 percent to 13,405 in Singapore.

To contact the reporter on this story: Masaki Kondo in Tokyo at mkondo3@bloomberg.net; Makiko Kitamura in Tokyo at mkitamura1@bloomberg.net.
Last Updated: July 1, 2008 21:05 EDT