Japanese Stocks Declining

apanese stocks fell after new home sales in the U.S. unexpectedly decreased, adding to concern growth in Japan's largest overseas market is slowing. Toyota Motor Corp. led declines by exporters.

``U.S. housing measures were starting to look better, so it was a bit of a shock to see the number drop,'' said Kazuhiro Takahashi, general manager at Daiwa Securities SMBC Co. in Tokyo. ``That will have a negative impact on Japan's market today.''

Stocks that trade without the right to a dividend from today including NTT DoCoMo Inc. and Nissan Motor Co. declined.

The Nikkei 225 Stock Average fell 138.33, or 0.8 percent, to 17,383.63 as of 9:29 a.m. in Tokyo. The broader Topix index lost 13.70, or 0.8 percent, to 1727.67.

Toyota, the world's largest automaker by value, dropped 70 yen, or 0.9 percent, to 7,750. Sony, the maker of the PSP portable game console, slid 80 yen, or 1.3 percent, to 6,180. Komatsu Ltd., the world's second-largest maker of construction machinery, lost 20 yen, or 0.8 percent, to 2,505.

New-home sales in the U.S. unexpectedly fell 3.9 percent to an annual pace of 848,000 in February, the lowest level in almost seven years. Economists had forecast they would rise 5.4 percent to a 985,000 rate, based on the median forecast in a Bloomberg News survey.

That sent the Dow Jones Industrial Average to its first drop in six days. The benchmark fell 0.1 percent to 12,469.07.

No Dividend Rights

NTT DoCoMo dropped 2,000 yen, or 0.9 percent, to 216,000. Japan's largest mobile-phone operator trades from today without the entitlement to a 2,000 yen dividend. Nissan, the country's No. 3 automaker, slid 22 yen, or 1.7 percent, to 1,307 after new buyers lost the right to its next 17 yen dividend.

``The consensus for the effect of the lost dividend rights is about 90 points off the Nikkei,'' said Yutaka Miura, a market analyst at Shinko Securities Co. in Tokyo.

Power companies also declined because ownership of their stock no longer confers entitlement to dividends. Tokyo Electric Power Co., the nation's biggest power producer with a 30 yen dividend, slumped 130 yen, or 3.1 percent to 4,110. Kansai Electric Power Co., the second largest, tumbled 130 yen, or 3.5 percent, to 3,580.

Utilities also continued to decline after revelations during the past month of accidents that were covered up dimmed investor confidence. A measure of electric power and gas companies in the Topix has fallen 3.5 percent since March 22.

Indian Steel Market

Tokyo Electric said on March 22 an accident that likely occurred at its Fukushima Daiichi plant in 1978 could have caused a nuclear chain reaction. Hokuriku Electric Power Co. was ordered to halt operations at its Shika No. 1 reactor on March 15 after the company said it covered up an accident eight years ago.

Nippon Steel Corp., the world's No. 2 maker of the alloy, rose 4 yen, or 0.5 percent, to 867.

The company is in talks with India's Tata Steel Ltd. to spend about 50 billion yen ($424 million) on a new plant to make thin-sheet steel used in automotive bodies. Nippon Steel will be among the first foreign steelmakers to enter the Indian market and could prompt other companies to do the same, the newspaper said.

Nikkei futures expiring in June dropped 0.4 percent to 17,400 in Osaka and slipped 0.3 percent to 17,400 in Singapore.

source:www.bloomberg.com