Japan Stocks Drop for 1st Time This Week as Auto Bailout Stalls

Source: Bloomberg

By Patrick Rial

Dec. 12 (Bloomberg) -- Japanstocks headed for the first decline this week on concern a global recession will deepen after Senate Republicans prevented passage of a U.S. auto bailout and the nation’s jobless claims soared to a 26-year high.

Toyota Motor Corp., which generates more than half its profit in North America, tumbled 4.9 percent to 2,920 yen. Sumitomo Mitsui Financial Group Inc. lost 2.3 percent after Bank of America Corp. said it may cut as many as 35,000 jobs as the financial crisis continues to plague banks. Hino Motors Ltd. slumped 6.3 percent after a newspaper reported it will shutter its truck factory for more days than originally anticipated.

The Nikkei 225 Stock Average tumbled 289.11, or 3.3 percent, to 8,431.44 as of 9:16 a.m. in Tokyo. The broader Topix index retreated 19.11, or 2.3 percent, to 830.14. Trading was active as today is the settlement day for Nikkei 225 futures and options contracts for December.

Read more: http://bloomberg.com/apps/news?pid=20601087&sid=a_3ilCGtP.LA&refer=home

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RIght out of the gate. Just plummeted like a rock. My friends in Japan are really hurting.

This is ridiculous.