Japanese stocks fell, with the Topix index headed for its first weekly decline in four weeks, after the European Central Bank’s decision to boost stimulus disappointed investors.
The Topix lost 0.7 percent to 1,343.41 at the trading break in Tokyo. The gauge is headed for a 2.3 percent drop this week after jumping 15 percent over the previous three weeks. The Nikkei 225 Stock Average declined 0.9 percent to 16,705.55. Stocks in Europe retreated when the central bank’s move to reduce interest rates to record lows, expand asset purchases and offer a borrowing subsidy to lenders was overwhelmed by President Mario Draghi’s revelation that more rate cuts are unlikely.
Oil explorers led losses among the Topix’s 33 industry groups after crude prices fell on Thursday. Kawasaki Heavy Industries Ltd. sank 4.2 percent after SMBC Nikko Securities Inc. cut its rating on the ship and machinery maker’s stock. Biopharmaceutical developer PeptiDream Inc. surged 16 percent after Mizuho Financial Group Inc. almost doubled its target price for the shares. Cyberdyne Inc., which makes robot exoskeletons for physical therapy, jumped 4.3 percent after Chief Financial Officer Shinji Uga said it plans a Nasdaq listing next year.