Export Worries Drag on Japan’s Stocks

Japan’s Topix stock index slid to its lowest level in more than 2 1/2 years Monday as Sony Corp. and other exporters fell after the U.S. jobless rate rose to a four-year high, spurring concerns about overseas demand.

The Nikkei-225 stock average fell 157.07 points, or 1.5%, to 10,359.72, after falling to as low as 10,215.43, the lowest level since Aug. 8, 1984.

“Rising unemployment in the U.S. is a sign that we may be entering a global recession,” said Hidenori Kawasaki, an equities manager at Kokusai Securities Co. “I’m concerned domestic demand-related companies such as steelmakers are joining computer-related companies in lowering profit forecasts.’

The Topix index of all shares on the Tokyo Stock Exchange’s first section slid 13.63 points, or 1.3%, to 1,067.20, the lowest level since Jan. 14, 1999.

Steelmakers fell after Japan’s largest steel company, Nippon Steel Corp., cut its full-year profit forecast by two-thirds as slowing growth in its domestic and export markets reduced demand and prices. Nippon Steel dropped by 3.1%

Sony fell 0.2% after sliding by as much as 2.2%. The consumer electronics and entertainment giant depends on the U.S. market for a third of its operating profit. Canon Inc., Japan’s largest maker of automated office equipment, fell 0.9%.

Toyota Motor Corp., the No. 3 auto maker, slumped 0.3%. The U.S. market accounts for half of Toyota’s operating profit.

Computer-related stocks that depend on the U.S. market also declined. Kyocera Corp., the biggest maker of ceramic casings to protect semiconductors, fell 2%. Softbank Corp., one of the largest backers of Internet businesses, fell 2%.

The U.S. said Friday that unemployment in August rose to the highest level in four years, as factories fired twice as many workers as in July.

“Whether the U.S. is heading for a further economic slump is a significant factor” that determines the fortune of the Japanese stocks, said Shuhei Abe, chief executive of Sparx Asset Management Co., which manages $2.2 billion in Japanese stocks. “Should the U.S. economy slow further, it will take Japan more time to recover.”