Japanese Stocks Fall as Airlines Decline on Broker Outlook

Japanese stocks fell, with airlines leading declines after a brokerage downgraded its price target on the nation’s two largest carriers. Commodity producers rallied on signs China is stepping up its efforts to support the domestic metals industry.

The Topix index dropped 0.5 percent to close at 1,594.45 in Tokyo, capping a 0.5 percent loss for the week that was shortened by a holiday. The Nikkei 225 Stock Average slid 0.3 percent to 19,883.94, falling from a three-month high.

ANA Holdings Inc. fell 1.8 percent and Japan Airlines Co. retreated 2.3 percent after Mitsubishi UFJ Morgan Stanley Securities Co. said both carriers face a drop in fuel surcharges from Dec. 1 and stiffer competition from Chinese rivals. The broker lowered its price target for both companies, and maintained their neutral rating.

Chinese regulators are considering a request from a metal industry group to curb excessive short selling, according to people with knowledge of the matter. Sumitomo Metal Mining Co. climbed 2.1 percent after copper yesterday jumped as much as 4.2 percent, while Nisshin Steel Co. rose 1.3 percent.

Source: Bloomberg