Japanese Stocks Drop, Head for the Worst Week in 8 Months By Patrick Rial http://www.bloomberg.com/apps/news?pid=20601087&sid=ao5Y5sRiEW9A&refer=home March 2 (Bloomberg) -- Japanese stocks dropped, set to complete their worst week in eight months, after losses by U.S. shares extended a global equity selloff. Exporters such as Sony Corp. also fell after the yen strengthened against the dollar. ``The chain reaction of falling stocks worldwide looks to be continuing,'' said Soichiro Monji, who helps oversee about $47 billion at Daiwa SB Investments Ltd. in Tokyo. ``Investors are now taking steps to avoid risk.'' The Nikkei 225 Stock Average fell 243.46, or 1.4 percent, to 17,210.38 as of 9:28 a.m. in Tokyo. The broader Topix index lost 18.61, or 1.1 percent, to 1721.50. The Nikkei dropped 5.3 percent and the Topix declined 5.1 percent so far this week, heading for the biggest weekly slides since a 6.7 percent drop in the five days ended June 9, 2006. Some retailers such as Isetan Co. gained after the government said Japan's household spending rose for the first time in a year and the jobless rate fell. Sony, maker of the PlayStation 3 game console, dropped 160 yen, or 2.6 percent, to 6,010. Canon Inc., the world's largest seller of digital cameras, declined 50 yen, or 0.8 percent, to 6,350. Toyota Motor Corp., Asia's No. 1 automaker, slid 120 yen, or 1.5 percent, to 7,740. The rout in stock markets worldwide started in China on Feb. 27 amid concern the government of the fastest-growing major economy will tighten controls on investment. Declines were accentuated as U.S. economic data pointed to slowing growth in the world's biggest economy. Continued Selloff In the U.S. the Dow Jones Industrial Average has fallen 3.2 percent in the last three sessions. Stocks across Europe and Asia dropped for a third day, extending their worst slump in four years and wiping out more than $1.5 trillion in global market value. The yen climbed to as high as 116.97 against the dollar yesterday, the strongest since Dec. 13. Against the euro, the yen rose as high as 154.55, a level not seen since January 10. It recently traded at 117.76 per dollar and 155.13 versus the euro. A stronger yen reduces the value of Japanese companies' overseas sales when converted into local currency and makes their products less competitive. Nikkei futures expiring in March slipped 0.3 percent to 17,340 in Osaka and fell 0.3 percent to 17,340 in Singapore.