Japan Stocks Fall as Drug Shares Slump After Valeant Plunge

Japanese stocks fell, with the Topix index slipping from a seven-week high on muted volume, as pharmaceutical shares led declines.

Kaken Pharmaceutical Co. tumbled 9.7 percent, leading losses among drugmakers after a short-seller report on Valeant Pharmaceuticals International Inc. roiled U.S. health-care stocks. Heavy machinery maker IHI Corp. slumped 11 percent after cutting its profit target. Software infrastructure service provider Obic Co. jumped 7.4 percent after saying first half net income rose 41 percent.

The Topix slid 0.6 percent to 1,518.22 at the close of trading in Tokyo, swinging from a gain of 0.6 percent. Volume was about 19 percent below the 30-day average. The gauge closed Wednesday at the highest since Aug. 31 as speculation grew that the Bank of Japan will boost monetary easing after weaker-than-expected trade data. The Nikkei 225 Stock Average fell 0.6 percent to 18,435.87 on Thursday, and the yen traded at 119.70 per dollar after weakening for five days.

Source: Bloomberg

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Most Chinese Stocks Rise as Technology, Drug Shares Lead Gains

Most Chinese stocks rose as technology and health-care companies rallied ahead of a top-level Communist Party meeting next week to discuss the nation’s economic and social plans for the next five years.

About eight stocks advanced for every one that dropped on the Shanghai Composite Index, which slipped 0.3 percent to 3,310.80 at 9:42 a.m. local time. East Money Information Co. and Lepu Medical Technology Beijing Co. climbed more than 2 percent. Industrial & Commercial Bank of China Ltd., which is reporting earnings later this month, slumped 4 percent on speculation the slowing economy may have hurt profit growth.

The Shanghai Composite has rebounded 8.4 percent in October, heading for the steepest monthly advance in six months, amid speculation the government will loosen monetary policy and announce more overhauls of state-owned enterprises to bolster the economy. The Communist Party meets for its fifth plenary session starting Oct. 26.

Source: Bloomberg

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