5:00AM New York, 7:00PM Tokyo – Global markets weakness, worries related to U.S. credit market and direction of the economy, local wireless price war, and a sharp rise in steel prices dragged index lower.

Stocks in Japan slumped to a weekly loss after KDDI announced a plan to lure customers that experts believe will wipe off 25 billion from the company’s revenues.

Market Sentiment

In Tokyo trading Nikkei 225 declined 1.37% or 187.82 to 13,500.46, dropping 0.9% for the week, and the broader Topix Index fell 1% or 13.35 to 1,321.37.

In the first section of the Tokyo Stock Exchange 9.1 billion shares worth 1 trillion yen were traded and in the second section 397 million shares valued at 4 billion yen changed hands.

Of the Nikkei 225 stocks 45 gained, 160 declined and 20 were unchanged. Toho Zinc led advancers in the Nikkei 225 stocks with a rise of 10.87% after metal prices ended the week on a high note.

KDDI to Abolish Fees

The Japan Times reported today that KDDI Corp said yesterday that it will from March 1 abolish fees for domestic mobile phone calls between family members who use ‘au’ service. The report notes that the 24-hour free-call program is aimed at encouraging existing au subscribers to continue using the service and lure more customers in the wake of heightening competition from rivals NTT DoCoMo and Softbank Corp.

Analysts estimate that KDDI’s plan could wipe off 25 billion yen from the company’s revenues.

Metal Prices Mixed

Metal prices were mixed today as gold for December delivery slipped 0.5% to 3,284 yen a gram on the Tokyo Commodity Exchange.

Conversely, platinum for immediate delivery gained 1.7% to a record $2,206 an ounce in New York trading.

BOJ to gradually Increase Rates

Bloomberg news reported that the Bank of Japan Governor Toshihiko Fukui said in Tokyo today monetary authorities will not abandon its policy of gradually increasing interest rates as the economy is projected to continue expanding while prices will remain stable.

Gainers & Losers

Toho Zinc led advancers in the Nikkei 225 index shares with a rise of 10.87% followed by rises in Clarion Co. Ltd of 8.17%, in UBE Industries of 7.24%, in Dowa Holdings of 5.06%, and in Sanyo Electric of 4.71%.

Commodity stocks continued to rally as prices of metals rose. Sumitomo Metal Mining advanced 0.92%.

KDDI Corp. led decliners in the Nikkei 225 index shares with a drop of 10.10% followed losses in Tokyo Dome Corp of 7.95%, in Citizen Holdings of 5.74%, in Taiyo Yuden Co. of 5.42%, and in Chiba Bank Ltd of 4.97%.

KDDI Corp slipped after the company announced yesterday that the company will abolish fees on domestic mobile phone calls to family members. Mobile phone companies declined on KDDI’s plans. NTT DoCoMo slumped 4.82% and Softbank Corp shed 2%.

Exporters declined as yen strengthened from 108.00 yesterday to 107.25 against the dollar. Canon slipped 2.61%, Komatsu fell 1.27% and Toyota Motor Corp. slumped 1.97%.