Reply #5: Japan Stocks Drop on Renewed Credit Concern, Property Outlook [View All]

[Ghost Dog]

Feb. 20 (Bloomberg) -- Japanese stocks fell, led by real- estate companies and banks, after a research report said condominium sales will drop and on concern losses will widen at financial companies.

Sumitomo Realty & Development Co. declined the most in more than nine years amid concern tight credit will restrict funding. Sumitomo Mitsui Financial Group Inc. slumped the most in a month. Losses accelerated in the afternoon after a report said KKR Financial Holdings LLC has delayed payment of billions of dollars in commercial paper and is working with its creditors to restructure the debt.

``KKR is not going to be the only one affected by this credit squeeze and that's heightening anxiety levels in the market,'' said Satoru Sakumoto, an asset adviser at Shinsei Bank Ltd. in Tokyo.

The Nikkei 225 Stock Average slumped 447.54, or 3.3 percent, to 13,310.37 at the close in Tokyo. The broader Topix index lost 42.57, or 3.2 percent, to 1,302.72. Both benchmarks dropped the most since Feb. 6.

/... http://www.bloomberg.com/apps/news?pid=20601101&sid=aF5SXbUeaO14&refer=japan