TOKYO: Japanese stocks fell after U.S. jobs data spurred speculation of an earlier interest-rate increase in the world’s largest economy, while a report showed Japan’s exit from a recession was weaker than previously reported.
Real-estate stocks led declines, with Mitsubishi Estate Co. dropping 1.8 percent. Mobile carriers retreated after Mizuho Financial Group Inc. downgraded NTT Docomo Inc., which fell 1.3 percent. Exporters gained as the yen weakened, with Makita Corp. adding 0.8 percent. Japan Display Inc. jumped 2.1 percent after announcing it will build a factory to manufacture sixth-generation LCD panels.
The Topix Index slid 0.4 percent to 1,534.32 as of 12:53 p.m. in Tokyo, paring last week’s 1.1 percent gain. All but 10 of its 33 industry groups fell. The Nikkei 225 Stock Average dropped 0.6 percent to 18,850.51. The yen lost 0.2 percent to 120.08 per dollar after weakening 0.6 percent on Friday as U.S. stocks slumped the most in two months after nonfarm payrolls rose more than projected and the jobless rate sank to a seven-year low.
“The massive drop in U.S. stocks is weighing more than the negative GDP revision,” said Tetsuo Seshimo, a portfolio manager at Saison Asset Management Co. in Tokyo, which oversees about $857 million. In terms of the gross domestic product revision, “as long as exports are gaining, we should see a spiral where that leads to higher business spending.”
