Japan's Nikkei 225 Falls First Time in Five Days as Yen Gains; Canon Drops

Japan’s Nikkei 225 Stock Average fell for the first time in five days after reaching its highest close since July and as the yen strengthened against the euro.

Canon Inc., which is the world’s largest camera maker and climbed 7.4 percent in the past four days, lost 0.9 percent. Olympus Corp., an endoscope maker that gets about 20 percent of its revenue in Europe, sank 3.2 percent. Mitsui & Co., a trading house that counts commodities as its biggest source of profit, fell 1.3 percent after oil and metals prices decreased.

“Investors will likely sell shares in profit taking after four days of advances,” said Ryoji Nagaoka, who helps with investment information at Tokyo-based SMBC Friend Securities Co.

The Nikkei 225 Stock Average fell 0.4 percent to 9,694.94 as of 10:33 a.m. in Tokyo. The broader Topix was little changed at 840.98, with about seven shares dropping for every six that gained.

The Nikkei 225 advanced 6.3 percent in four consecutive days of gains. That was the longest winning streak since the period ended Sept. 6, when it had a 5.4 percent advance.

The Topix index climbed 3 percent last week, the biggest weekly climb since the period ended July 9, on optimism the U.S. Federal Reserve will succeed in stoking growth in the world’s biggest economy. Stocks in the gauge trade at an average 15 times estimated earnings, compared with 38.1 times at the start of the year.

Canon fell 0.9 percent to 3,890 yen. Panasonic Corp., an electronics maker that gained 5.5 percent since Nov. 2, slid 0.9 percent to 1,202 yen.

Yen Strengthens

Olympus Corp. declined 3.2 percent to 2,186 yen and Kyocera Corp., an electronic components maker that gets almost 20 percent of its revenue from Europe and had jumped 8 percent this week as of yesterday, retreated 1.2 percent to 8,570 yen.

The yen appreciated to as high as 112.37 against the euro today in Tokyo, compared with 113.34 at the close of stock trading yesterday. Against the dollar, Japan’s currency strengthened to 81.09 from 81.24. A stronger yen cuts overseas income at Japanese companies when repatriated.

Mitsui slumped 1.3 percent to 1,335 yen and smaller rival Sumitomo Corp. lost 1.3 percent to 1,110 yen.

The London Metal Exchange Index of prices for six industrial metals including copper and aluminum slumped 0.4 percent yesterday. Oil dropped for the first time in seven days today, declining from a two-year high in New York, after analysts forecast U.S. crude inventories climbed to the highest level in 18 months. The Baltic Dry Index of shipping rates for commodities declined for an eighth straight day.