Japan’s Nikkei 225 Falls Most in Four Weeks on Earnings, Yen

By Akiko Ikeda and Patrick Rial

Oct. 29 (Bloomberg) -- Japanese stocks fell, dragging the Nikkei 225 Stock Average to its steepest decline in four weeks as corporate losses and falling commodity prices raised concern the global recovery is faltering.

Advantest Corp. slumped 6.6 percent, after the world’s biggest maker of memory-chip testers posted a wider loss as orders slumped. Hino Motors Ltd., Japan’s biggest maker of heavy-duty trucks, tumbled 8.7 percent after reporting a first- half loss. Cosmo Oil Co. plunged 3.3 percent as crude prices declined. Stocks also fell as the yen strengthened to its highest level in a week.

“The market was hoping for major forecast upgrades that just aren’t coming through as companies are clearly nervous about the second half,” said Naoki Fujiwara, chief fund manager at Tokyo-based Shinkin Asset Management Co., which oversees the equivalent of $4 billion. “It’s probably better to delay buying because stocks are likely headed lower.”

The Nikkei 225 fell 1.8 percent to 9,891.10, at the market close in Tokyo. It was the sharpest slide since Oct. 2. The broader Topix index dropped 0.7 percent to 882.26, with about three stocks falling for each that gained. Stocks in the benchmark are valued at 37 times estimated earnings, compared with 20 at the start of 2009.

Crude oil for December delivery lost 2.6 percent to $77.46 a barrel in New York yesterday. The London Metals Index, a measure of six metals including copper and zinc, slipped 3.2 percent yesterday.

The yen appreciated to 90.38 against the dollar, its strongest level since Oct. 20. Against the euro, Japan’s currency strengthened to 133.12 from 135.27. The stronger yen reduces income when overseas revenue is converted into the local currency.

To contact the reporters for this story: Akiko Ikeda in Tokyo at iakiko@bloomberg.net; Patrick Rial in Tokyo at prial@bloomberg.net.