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"Nothing new came of last week's European summit"
- Fumiyuki Nakanishi, a strategist at Tokyo-based SMBC Friend Securities Co.
Japanese stocks declined on Tuesday after rating companies said last week's summit did little to resolve the debt crisis. The Nikkei 225 shed 1.17%, or 101.01 points, to 8,552.81, while the broader Topix lost 0.80%, or 5.98, to 740.71.
"Nothing new came of last week's European summit," said Fumiyuki Nakanishi, a strategist at Tokyo-based SMBC Friend Securities Co. "If EU nations get downgraded, funding costs in the region will definitely rise."
"The market is pricing in possible downgrades to a degree, but people have a sense that this will not lead to a financial crisis," said Kazuyuki Terao, chief Investment Officer of RCM Japan Co.