Japan's Nikkei 225 Drops on Takeda Suspension; Sekisui Rallies

Japan's Nikkei 225 Stock Average fell for the first time in three days, led by shares of Takeda Pharmaceutical Co. after U.S. drug regulators recommended patient studies on one of its most promising experimental medicines be suspended.

Takeda, Japan's largest drugmaker, fell by the most in two decades and at least three brokerages cut their recommendations on the stock. Toshiba Corp. led declines by companies whose earnings disappointed investors, prompting two brokerages to lower their rating on the shares.

Indexes pared losses in the afternoon as Sekisui House Ltd. led gains by homebuilders after the Yomiuri newspaper said the government may relax regulations that slowed the construction of new homes.

``Japanese pharmaceutical companies are relatively small compared to international counterparts, so a single drug can have a big impact on earnings,'' said Masaki Iso, who oversees about $7.3 billion as head of Japanese equities at Yasuda Asset Management Co. in Tokyo. ``The negative effect from the tighter regulations has mainly hit the construction sector.''

The Nikkei 225 fell 47.07, or 0.3 percent, to 16,651.01 at the close of trading in Tokyo. The broader Topix index rose 0.72 point to 1,607.21, after dropping as much as 1 percent.

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