Japanese Shares Fall, Led by Toyota, on U.S. Growth, Inflation Concerns

(Bloomberg) -- Japanese stocks dropped after the Federal Reserve said interest rates may have to rise to tame inflation. Toyota Motor Corp. and Canon Inc. led declines by companies that rely on the U.S. market for profits.

``The Fed's comments were not good for the market because the economic recovery might be slowing down and on the other hand, the inflation risk remains,'' said Masaki Iso, who oversees about $7.3 billion as head of Japanese equities at Yasuda Asset Management Co. in Tokyo. ``These comments cooled down market sentiment,'' causing shares to be sold.


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