Japan’s Topix index headed toward its steepest drop in three months after surging Italian bond yields stoked concern that Europe’s debt crisis is spreading and Daiwa Securities Group Inc. had its credit rating cut.
Sumitomo Mitsui Financial Group Inc., Japan’s second- biggest lender, fell 5.4 percent. Brokerages declined after Moody’s Investors Service downgraded Daiwa’s credit rating and said it may cut Nomura Holdings Inc.’s as global expansions by Japan’s two biggest securities firms unravel. Hitachi Construction Machinery Co. led machinery firms lower after orders declined more than forecast.
Read the rest of the story: Japanese Stocks Fall on Italy Bond Yields, Daiwa Rating Cut.