5:00AM New York, 7:00PM Tokyo – The Bank of Japan lowers economic growth assessments for several regions.

Stocks in Japan plummeted dragged by exporters on a strengthening yen and the Bank of Japan Governor Toshihiko Fukui low assessments of regional economies.

In Tokyo trading Nikkei 225 declined 0.98% or 138.16 to 13,972.63, below 14,000 for the first time since November 2005, while the broader Topix Index declined 2% or 27.38 to 1,350.20

Of the Nikkei 225 stocks 51 gained, 168 fell, and 6 were unchanged.

Fast Retailing led advancing stocks with a rise of 8.76% after first quarter sales increased 11% and profit soared 8.7%. Fast Retailing stocks closed 2.6% higher.

The Bank of Japan said today in its regional economic report for January 2008 that conditions in four of the nine branches were worsening, and lowered its assessments of Hokkaido, Tohoku, Hokuriku and Kanto-Koshinetsu.

According to the report, housing investment fell in all of Japan’s regional economies because of the revised building standards laws introduced in June 2006 that imposed stricter rules for obtaining building permits.

Also small businesses are increasingly becoming cautious of the economic outlook as rising oil prices and raw material prices squeeze profits.

The Bank of Japan Governor Toshihiko Fukui said at a quarterly meeting of central bank branch managers in Tokyo today that the economy is expected to slow. Commented Fukui: “Economic growth will keep slowing for the time being, although it’s expected to pick up moderately thereafter.”

The Nikkei news online reported yesterday that Mizuho Corporate Bank is mulling to buy a stake in $1.2 billion of Merrill Lynch.

Mizuho is reportedly in the final stages of buying the preferred shares from the troubled U.S. broker by the end of this month and shares will likely be convertible to common shares.

Of the Nikkei 225 index shares, Fast Retailing led gainers with a rise of 8.76% followed by rises in Eisai Company Limited of 3.39%, in CSK Holdings Corporation of 2.71%, in Kyowa Hakko Kog of 2.65%, in Seven & I Holdings of 2.60%.

Hitachi Zosen led decliners in Nikkei 225 stocks with a fall of 9.92% followed by losses in Mitsui Engineering & Shipbuilding of 8.22%, in Nippon Mining House of 7.40%, in Kawasaki Heavy Industries of 6.92%, and in Komatsu Limited of 6.92%.

Hitachi Zosen and other shipbuilders fell after weekend reports the Baltic Dry Index fell the most since 1989 and on news that the economy in Japan is slowing. Mitsui OSK Lines fell 3.72%.

Exporters also plunged heavily as the yen strengthened the most in seven weeks to as high as 107.38 against the dollar yesterday. However, at the close of trade the yen slipped to 107.56 from 107.57.

Canon Incorporated declined 2.11%, Toyota Motor Corporations lost 1.78% and Honda Motor Corporation declined 4.40%.

Bloomberg news reported today that Japan Airlines Corporation plans to forgo raising cash through selling its credit card unit and instead sell 100 billion yen of securities, including preferred shares to banks, petroleum and trading companies.

Japan Airlines is presently in talks with Mitsubishi UFJ Financial Group, Mizuho Financial Group, Sumitomo Mitsui and Development Bank of Japan to sell the new securities.

Nippon Oil Corp said today it will be processing less crude oil this month as warmer weather has lowered the demand for kerosene. The company had originally planned to process 30.15 million barrels.