Japan's key stock index extends longest losing streak since 1954 on oil price worries

Fri, Jul 4 04:12 PM

TOKYO (AP) _ Japan's key stock index extended its longest slide in more than a half-century, as record oil prices intensified concerns over the impact on corporate earnings and consumer demand. The benchmark Nikkei 225 Stock Average lost 27.51 points, or 0.21 percent, to 13,237.89.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange slipped 0.01 percent to 1,297.88. The Nikkei has lost more than eight percent of its value over the 12-day fall, which is the longest losing streak since the index stumbled for 15 straight trading days starting April 28, 1954.

Light, sweet crude for August delivery surged to a record close of US$145.29 on the New York Mercantile Exchange Thursday and held near US$145 in Asia Friday. Losers Friday in Tokyo included real estate firms, paper makers, retailers and power companies.

Property shares were pummeled, led by a 28.14 percent drop in Urban Corp. on the mounting credit worries in the sector.

The worries prompted the Japan Credit Rating Agency last month to conduct emergency reviews of its rating on real estate developers, and it downgraded Urban's rating June 4. The company's shares have been plunging since.

Also dragged down were Sumitomo Realty & Development Co., which fell 3.04 percent to 2,075 yen, and Mitsubishi Estate Co.

, down 1.25 percent at 2,375 yen. Among paper companies, Oji Paper Co.

fell 1.01 percent to 492 yen, and Nippon Paper Group, Inc. slipped 0.36 percent to 280,000 yen.

In a research report, Deutsche Securities analyst Katsuhiko Ishibashi said he expects earnings at both companies to fall short of forecasts this fiscal year through March, due in part to their "optimistic outlook on crude oil prices." Major retailer Seven & i Holdings Co.

lost 1.92 percent to 3,060 yen, and The Kansai Electric Power Co. closed down 0.80 percent at 2,475 yen.

Among gainers, Sony Corp. edged up 0.65 percent to 4,630 and financial group Resona Holdings, Inc.

added 1.23 percent to 165,000 yen. Gains by the dollar Thursday against the euro helped keep oil prices from rising further.

The greenback strengthened after the European Central Bank raised its benchmark interest rate an expected quarter point but signaled it didn't expect additional rate hikes that might further boost the euro. On Friday, the dollar was slightly weaker against the euro at US$1.5711, compared with US$1.5677 late Thursday.

The yen was holding steady to the U.S. currency at 106.74. Against other major Asian currencies, the dollar was up at 45.2830 Philippine peso and down at 1.3612 Singapore dollar.

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