Sony Corp. which sells about 20 percent of its PlayStation game consoles and other products in Europe, dropped 1.8 percent. Toyota Motor Corp., the world's biggest carmaker by sales, fell 2.1 percent. Mitsubishi UFJ Financial Group Inc., Japan's biggest lender by market value, declined 1.1 percent, after regulators said banks deemed too big to fail must hold more capital as part of efforts to prevent another financial crisis.
It's not easy for investors to get bullish with all of these unresolved things waiting out there," said Naoki Fujiwara, who helps oversee $6 billion at Shinkin Asset Management Co. in Tokyo. "It's unclear whether Greece will be able to pass its reconstruction plans."
The benchmark Nikkei 225 Stock Average fell 0.9 percent to 9,595.18 at the 11 a.m. trading break in Tokyo. The broader Topix index also retreated 0.9 percent to 826.14.
The Topix index lost 10 percent through June 24 from March 10, the day before a magnitude-9 earthquake and tsunami devastated Japan's northeast coast, triggering the worst nuclear accident in 25 years and leaving more than 23,000 people dead or missing. Stocks have also fallen on signs the U.S. economic recovery is slowing and amid a debt crisis in Greece that the International Monetary Fund said may "spill-over," hurting banks in the region that hold the country's bonds.
Vote in Greece
Sony lost 1.8 percent to 2,040 yen. Fanuc Corp., a maker of industrial robots that gets 11 percent of its sales in Europe, lost 1.6 percent to 12,700 yen. Kyocera Corp., a maker of solar panels which gets more than 17 percent of sales in Europe, sank 1.3 percent to 8,100 yen.
In Greece, Prime Minister George Papandreou faces a vote in parliament expected June 29 on a five-year austerity plan that must pass for the cash-strapped nation to secure more international aid and avoid a default that destabilizes the region's banking system. Greece needs loans from Europe and the International Monetary Fund in order to cover 6.6 billion euros ($9.4 billion) of maturing bonds in August.
The U.S. Commerce Department may say today that consumer spending increased the least since June 2010. Purchases rose 0.1 percent last month, according to the median estimate of 63 economists surveyed by Bloomberg News. That compares with an increase of 0.4 percent in April.
Banks Retreat
Mitsubishi UFJ Financial Group fell 1.1 percent to 372 yen, while Mizuho Financial Group inc. retreated 1.6 percent to 126 yen. Sumitomo Mitsui Financial Group Inc., Japan's second- largest bank by market value, sank 1 percent to 2,374 yen.
The Basel Committee on Banking Supervision said on June 25 that the world's largest banks must hold as much as 2.5 percentage points in additional capital as part of efforts to prevent another crisis like the one that stemmed from the bankruptcy of Lehman Brothers Holdings Inc. Although it isn't clear which lenders may be subject to the rule, as many as 30 banks may face some level of surcharges, according to a person familiar with the discussion.
"We see a possibility of the Japanese megabanks facing tough standards here and recommend a cautious investment stance," Credit Suisse Group AG analyst Shinichi Ina wrote in a report dated today.
Systemically Important
Because of its ties to U.S.-based Morgan Stanley, Mitsubishi UFJ may be defined as one of the most important lenders to the international financial system, Yoshinobu Yamada, an analyst at Deutsche Bank AG, said this month. Mitsubishi UFJ in April agreed to exchange $7.8 billion of convertible preferred stock in Morgan Stanley for common shares that will give it a 22 percent stake in the U.S. bank and make it the biggest common shareholder.
Deutsche's Yamada said Mitsubishi UFJ will likely be able to meet higher capital requirements without selling new shares. Smaller rivals Mizuho and Sumitomo Mitsui Financial Group Inc. may not be classified as systemically important because their operations overseas are comparatively limited, Yamada said. (SOURCE http://www.sfgate.com ) For the latest updates PRESS CTR + D or visit Stock Market news Today
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