Japanese stocks fell for a second day

Japanese stocks fell for a second day after the dollar weakened against the yen, while the Tokyo market was closed yesterday, dampening prospects for export earnings.

Honda Motor Co., automaker of Japan's second-largest, lost 1.1 percent. Kyocera Corp., a manufacturer of electronic equipment that earns a third of its income from U.S. and Europe, fell 1.1 percent. Mitsubishi UFJ Financial Group Inc., a bank whose stock has advanced nearly 15 percent over the past two months, declined 0.7 percent. Mitsui O.S.K. Lines Ltd., operator of the largest merchant fleet in the world, fell 2.5 percent after Goldman Sachs Group Inc. cut its rating to "sell" and freight rates fell to a five-month low.

"The stronger yen is likely to lead investors to sell shares to take profits," said Juichi Wako, senior strategist at Tokyo-based Nomura Holdings Inc.

The Nikkei 225 Stock Average fell 0.7 percent, to 10,279.19 at the 3 pm close in Tokyo. The broader Topix lost 0.5 percent to 901.66, with more than three times as many shares declining as it progresses. Both indicators had the biggest drop since Dec. 20 and plunged to the lowest levels since.

For the week, both the Nikkei 225 and Topix lost 0.2 percent. The Nikkei 225 fell for the first time in eight weeks, and the broadest indicator slipped for the first time in four.

The Topix was down about 9.7 percent from its peak this year on 15 April as the debt crisis of Europe, China's measures to curb property prices and concerns about U.S. economic growth . dampened confidence in a global recovery. Shares in the overall index are valued at 15.7 times estimated earnings on average, nearly four months.

Exporters decline

Carmakers contributed most to the Topix's decline among 33 industry groups, followed by banks and manufacturers of electronic products.

Honda Motor Co., a manufacturer of cars that gets about 80 percent of its sales abroad, fell 1.1 percent to 3.265 yen. Toyota, the largest automaker in the world, fell 0.5 percent to 3.225 yen. Mazda Motor Corp., the second largest exporter of cars in Japan sank 2.5 percent to 239 yen.

Kyocera lost 1.1 percent to 8.420 yen. Murata Manufacturing Co., a manufacturer of electronic precision obtained over 80 percent of its revenues outside Japan fell 1.8 percent to 5.560 yen.

Weak dollar

The dollar fell to a low of 82.86 against the yen yesterday in New York, the lowest level since 14 December. The euro fell to a low of 108.46 against the yen yesterday, near the lowest level this month. This reduces the value of foreign earnings in Japanese companies when converted into local currency. Japanese stock markets were closed yesterday for a public holiday.

Mitsubishi UFJ Financial, Japan's biggest bank, traded, fell 0.7 percent to 440 yen. Sumitomo Mitsui Financial Group Inc., which is the second largest bank in Japan, jumped almost 20 percent in the past two months, fell 0.8 percent to 2.888 yen. Sumitomo Mitsui was the most active action by the value in Japan.

Bank stocks as a group grew 15 percent in the past two months, surpassing 9.8 the Topix percent gain over the same period.

"The stock market has increased recently and may be time for investors to take a break," said Hisakazu Amano, who helps oversee about $ 29 billion Tokyo-based T & D Asset Management Co. investors "in buying positions can clear their positions, and that is the end of this year. "

Trade Light

About 1,460,000,000 shares are traded on the Tokyo Stock Exchange today, the lowest since Aug. 23. Markets in Australia, Hong Kong and Singapore closed early on Christmas Eve.

"Investors are in a mood to wait and see," said Naoteru Teraoka, general manager based in Tokyo Chuo Mitsui Asset Management Co., which oversees about $ 26 billion. "There is no Japanese exclusive story big enough to encourage action among many foreign investors taking a vacation."

Mitsui O.S.K. fell 2.5 percent to 554 yen after its investment rating dropped to "sell" from "buy" by Goldman Sachs. Nippon Yusen KK, the Japan's largest shipping company by sales, fell 1.4 percent to 364 yen and Kawasaki Kisen Kaisha Ltd., the third largest, fell 1.4 percent to 353 yen after Goldman cut its target prices and maintained its "neutral" rating on both stocks. Shipping companies had the steepest percentage decline in the industry group of the Topix.

The Baltic Dry Index of shipping commodities fell 1.9 percent yesterday, a retreat of 13 consecutive to the lowest level since 21 July. Copper futures for March delivery fell 0.4 percent yesterday in New York. The London Metal Exchange index of six metals such as copper and aluminum, fell 0.8 percent yesterday, falling for a second day.