TOKYO--Japanese stocks declined for a fourth day after Italian and Spanish bond yields jumped at debt sales, overshadowing the slowest decline in U.S. home prices in more than a year.
Canon Inc., which depends on Europe for almost a third of its sales, sank 2.6%. Keihin Corp. lost 2.3% after Deutsche Bank AG cut the partsmaker’s equity rating to “hold.” Osaka Gas Co. climbed for a second day after saying it aims for 10 times growth at its Chinese subsidiary by 2016.
The Nikkei 225 Stock Average fell 0.1% to 8,653.87 as of 9:33 a.m. in Tokyo, with volume 32% below the 30- day average for the time of day, according to data compiled by Bloomberg. Borrowing costs for Italy and Spain increased at debt auctions yesterday ahead of a summit of European leaders -- the 19th since the crisis began -- this week.
“Investors are finding it difficult to take positions,” said Koichi Kurose, chief economist in Tokyo at Resona Bank Ltd., which oversees about $75 billion. “The U.S. is overcoming its structural problems of deteriorating home markets, but at the same time we don’t see signs of improvement in Europe’s debt crisis.”
The broader Topix lost 0.2% to 737.58 after rising as much as 0.2%. (Bloomberg/T07/TW)