Japanese stocks fell on the first trading day of the year, with investors returning after national holidays during which most overseas equity markets declined.

The Topix retreated 0.6 percent to 1,399.44 as of 9:01 a.m. in Tokyo, after climbing 8.1 percent last year. The Nikkei 225 Stock Average dropped 0.7 percent to 17,330.30. The yen rose 0.1 percent to 120.41 per dollar.

The Standard & Poor™s 500 Index has dropped 1.6 percent since Japanese stocks last traded. The Stoxx Europe 600 Index has fallen 0.9 percent in that span.

Futures on the S&P 500 fell 0.3 percent today. Data on Jan. 2 showed that U.S. manufacturing cooled in December, with the Institute for Supply Management™s factory index dropping to a six-month low of 55.5 from 58.7 in November.

Source : Bloomberg