Topix

The Nikkei 225 Stock Average declined 137.13, or 1.4 percent, to 9,703.72 in Tokyo, the lowest close since June 4. The broader Topix index fell 11.82, or 1.3 percent, to 911.21, with two stocks retreating for each that advanced. The value of stocks trading in Tokyo was the lowest since June 8. The Nikkei recovered to 10,000 last week for the first time in eight months as improved economic indicators boosted investor confidence in the outlook for equities. Merrill Lynch & Co. said yesterday fewer investors were underweight in Japanese equities this month than in May.

The yen strengthened versus the dollar yesterday to the 95 level for the first time since June 4. The Japanese currency appreciated to as much as 95.52 from 96.16 at the close of stock trading in Tokyo. A stronger yen diminishes the value of overseas sales for Japanese exporters. Honda fell for a sixth day with a 2.6 percent drop to 2,605 yen, marking the longest period of decline since Aug. 4. Sony, maker of the PlayStation 3 game machine, sank 3.1 percent to 2,475 yen. Electronics makers were the biggest drag on the Topix.

Mitsubishi, Japan’s largest trading house by value, lost 4.2 percent to 1,793 yen, and closest rival Mitsui & Co. retreated 3.6 percent to 1,139 yen. A gauge of six metals in London fell yesterday for a fourth session, the longest losing streak since a seven-day slump ending Dec. 5. “After the Nikkei hit 10,000, people’s focus is going back to the patchy state of the global economy,” said Koji Toda, chief fund manager at Resona Bank Ltd. “Investors are taking profit because they know they can’t expect to see a V-shaped economic recovery.” “Investors feel environment-related shares will stay solid even if the market enters a downward trend,” said Ichiyoshi’s Akino. “As people become more convinced this rally is coming to a close, they are more eager to buy these shares.”