2013.07.2605:41:56UTC+00Japan stocks weaken on firm yen; autos, banks retreat

Japanese stocks set out on the path to a third day of declines Friday as exporters drifted back after the yen powered up overnight in U.S. trade, with Nissan Motor Co. losing stability after displaying their quarterly results. The Nikkei Stock Average surrendered 2% to 14,269.47 and the broader Topix missed 1.9% to 1,179.10. The losses came even as official data showed Japan registered inflation in June in response to the easy financial policies adopted by the central bank. Nissan shares relinquished 1.5% after reporting a 14% increase in quarterly earnings. Suzuki Motor Corp. backslide 3.7% in the downbeat market despite upbeat results at its Indian subsidiary. Banks also pulled back, despite a Nikkei newspaper report the nation's three so-called mega banks had likely generated a 20% skyrocket increase in quarterly profits. Among them, Sumitomo Mitsui Financial Group Inc. slumped 2.7% and Mitsubishi UFJ Financial Group Inc. traded 3.2% lower.