5:00AM New York, 7:00PM Tokyo – Volatile U.S. stock trading continue to hobble stocks in Japan. Banks and auto stocks fell after the earnings from Bank of America and Texas Instruments.

Stocks in Japan fell led by automakers and financial stocks on gloomy economic outlook forecasts from Bank of America Corp and Texas Instruments.

In Tokyo trading Nikkei 225 fell 1.09% or 148.73 at 13,547.82, and the broader Topix Index declined 1.5% or 20.05 at 1,311.46.

In the first section of the Tokyo Stock Exchange 7.7 billion shares worth 925 billion yen were traded and in the second section 175 million shares valued at 4.9 billion yen were traded.

Of the Nikkei 225 stocks 52 gained, 159 declined and 14 were unchanged. Ebara Corp. led advancers in the index shares with a rise of 8.90% and Oki Electric Industries increasing 6.97%.

Bank of America profit declines 77%

Bank of America Corp. reported yesterday first quarter profit plunged 77% dragged by trading losses and a $3.3 billion provision for problem loans.

Quarterly earnings were $1.21 billion, or 23 cents per share compared to $5.26 billion on net revenue of $17 billion or $1.16 a share, on $18.16 billion in revenue a year earlier.

Trading losses in the first quarter were $1.31 billion on $1.47 billion in write downs of collaterized debt obligations and $439 million for loans to fund leveraged buyouts.

Bank of America added that it remains concerns about the health of the consumer and expects losses in its retail banking to rise as the economy weakens.

Texas Instruments forecasts lower than expected earnings

Texas Instruments reported yesterday that first-quarter profit rose to $662 million, or 49 cents a share, from $516 million, or 35 cents a share, a year earlier.

Also revenue increased to $3.27 billion from $3.19 billion in the previous year for the same period.

However, TI forecast second-quarter earnings per share of 42 to 48 cents on revenue of $3.24 billion to $3.5 billion, lower than analyst forecasts of 48 cents per share on revenue of $3.45 billion.

The company believes second quarter profit will be lower because of the gloomy economic outlook and the anticipated decline in demand for third-generation phones with internet navigation.

Royal Bank of Canada sells its samurai notes

Bloomberg news reported today that Royal Bank of Canada the nation''s largest bank recently sold 146.3 billion yen of samurai bonds, bringing debt issuance in Japan this year by companies based outside the country to more than 1 trillion yen.

The bank also sold 37.8 billion yen of three-year notes, paying a yield of 1.77%, or 70 basis points more than the London interbank offered rate for yen.

Additionally, the company issued 28.3 billion yen of fixed-rate five-year notes and 80.2 billion yen of similar-maturity floating-rate debt at spreads of 81 basis points

Economists note that declines in government bond yields in Japan have boosted demand for company debt as investors seek higher returns.