Japan Stocks Fall a 3rd Day on Urban Bankruptcy, Credit Concern

By Patrick Rial
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Aug. 14 (Bloomberg) -- Japanese stocks fell for a third day after Urban Corp. filed the nation's biggest bankruptcy claim in six years and Merrill Lynch & Co. said the global credit crisis isn't over.

K.K. DaVinci Holdings, the nation's largest real estate asset manager, fell by its trading limit after Urban became the fifth listed Japanese developer to file for court protection in the past month. Kansai Urban Banking Corp. lost 8.9 percent after saying it may not be able to recover a loan from Urban. Kawasaki Kisen Kaisha Ltd. led shipping lines higher after cargo fees for commodities snapped a 23-day losing streak.

``Japan's property market experienced its own mini-bubble where enthusiasm got overheated, but now the failures have started, and there's still more bad news to come,'' said Hideyuki Ookoshi, who helps oversee $365 million at Chiba-Gin Asset Management Co. ``People are looking to pick up oversold commodities shares and shippers on their longer-term outlook.''

The Nikkei 225 Stock Average fell 66.25, or 0.5 percent, to 12,956.80 at the close of trading in Tokyo, after climbing as much as 0.5 percent. The broader Topix index finished at the lowest since April 1, losing 7.55, or 0.6 percent, to 1,238.93. More than two shares retreated for each that rose on the benchmark.

To contact the reporter for this story: Patrick Rial in Tokyo at prial@bloomberg.net.