Japan Stocks Fall, Taking Cue From Wall Street

Japanese stocks took a turn to the downside Thursday morning, with the Nikkei Average lower by 0.8% after a 2.1% rally the previous day, while the Topix pulled back by 0.9%. The moves followed overnight losses in the U.S., with many of the blue chips underperforming the market, including Hitachi Ltd. (down 1.4%), Fuji Electric Co. (down 1.3%), Nissan Motor Co. (down 1.1%), and Japan Airlines Co. (down 1.9%). Nidec Corp. lost 4.5% of its stock price despite posting a solid gain for April-September net profit, as the motor maker's shares had risen ahead of the earnings announcement. Auto-parts producer Takata Corp. lost 4.9% as reports said U.S. prosecutors were looking into whether the company misled the public about problems with its air bags that have since sparked a rash of recalls. Among the advancers, Sanrio Co. added 0.5% after striking a deal to license its Hello Kitty characters to China Mobile Games and Entertainment Group , while smaller name Ikyu Corp. improved by 0.9% as a Nikkei news report tipped the online hotel-booking site to post its third straight record profit for the fiscal first half.