Japan Topix Index Falls, Led by Tiremakers; Steelmakers Gain

By Masaki Kondo

Feb. 26 (Bloomberg) -- Japan’s Topix stock index fell, led by tiremakers and power generators as higher oil prices lowered their earnings prospects. Steelmakers advanced on speculation they will be able to ramp up production.

Bridgestone Corp., the world’s largest tiremaker, sank 4.5 percent after oil jumped to the highest level in a month, raising production costs. Tokyo Electric Power Co. slid 0.7 percent. Advantest Corp., the world’s biggest maker of memory- chip testers, plunged 13 percent after it forecast a loss. Nippon Steel Corp., the world’s No. 2 producer of the metal, climbed 2 percent after saying output has probably bottomed out.

The Topix index slumped 3.09, or 0.4 percent, to close at 742.53 in Tokyo. The Nikkei 225 Stock Average lost 3.29, or less than 0.1 percent, to 7,457.93, after gaining as much as 1.9 percent. About the same number of shares rose and fell on both gauges.

The Nikkei lost 16 percent this year through yesterday as recessions in the world’s largest economies reduced demand for Japanese-made products.

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