Japanese stocks declined as the yen’s gain to its highest level in three weeks against the dollar overshadowed stronger-than-forecast growth in U.S. manufacturing.

Honda Motor Co. (7267), a carmaker that gets almost 85 percent of its sales abroad, fell 0.8 percent. Olympus Corp. (7733) sank 2.1 percent after Kyodo News reported the company will pare its lineup of digital cameras. Mitsui Chemicals Inc. (4183) gained 1.2 percent after Jefferies Group Inc. raised its rating to “buy.”

“Investors may avoid buying blue chips such as carmakers and other exporters until they get more visibility on the direction of the currency’s moves,” said Fumiyuki Nakanishi, a strategist at Tokyo-based SMBC Friend Securities Co. “Investors aren’t in a rush to buy” before a U.S. jobs report to be released at the end of the week.

The Nikkei 225 Stock Average (NKY) fell 0.6 percent to 10,051.33 as of 9:47 a.m. in Tokyo, with volume about 30 percent lower than the 30-day average. The broader Topix (TPX) Index slid 0.6 percent to 850.86, with about 2.5 times as many shares declining as advancing.

U.S. Manufacturing

Futures on the Standard & Poor’s 500 Index (SPXL1) slid 0.1 percent today. The gauge gained 0.8 percent in New York yesterday after manufacturing in the U.S. expanded at a faster pace than forecast in March, a sign that industry is weathering slower global growth.

The yen appreciated to as high as 81.56 against the dollar today in Tokyo, compared with 83.05 at the close of stock trading yesterday. Japan’s currency strengthened to 108.70 against the euro from 110.76. A stronger yen cuts overseas income at Japanese companies when repatriated.

The Topix (TPX) has risen 8.1 percent since Feb. 14, when the Bank of Japan increased its bond purchases, weakening the yen. The value of stocks listed on the index has risen to 1.05 times book value, up from 0.88 in December, according to data compiled by Bloomberg. A number below one means companies can be bought for less than value of their assets.

To contact the reporters on this story: Norie Kuboyama in Tokyo at nkuboyama@bloomberg.net; Masaaki Iwamoto in Tokyo at miwamoto4@bloomberg.net

To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net.

• Asian Stocks Rise on Faster Japan Inflation, U.S. Outlook   (2014-05-30 09:33:27)
• Asian Stocks Rise on Faster Japan Inflation, U.S. Outlook   (2014-05-30 09:33:27)
• Asian Stocks Rise on Faster Japan Inflation, U.S. Outlook   (2014-05-30 09:33:02)
• Asian Stocks Fluctuate After Japan Retail Sales Slump   (2014-05-29 09:37:51)
• Asian Stocks Fall Second Day as Health-Care Shares Drop   (2014-04-08 08:52:58)
• Industrial Stocks Take ETF Bounty   (2014-04-08 08:52:29)
• Asian Stocks Set for Second Weekly Gain Before U.S. Jobs   (2014-04-04 09:46:16)
• Australia Model Curbs Speed as CEO Says U.S. Too Far Gone   (2014-04-04 09:45:49)
• Asia Stocks Rise 4th Day as Consumer Shares Lead Gain   (2014-03-31 10:48:33)
• Asia Stocks Swing After U.S. Manufacturing Index Falls   (2014-03-25 11:29:14)