Japan Tobacco Drops on China-Made Pork Product Recall

Source from:  By Stuart Biggs and Noriko Tsutsumi Jan. 31 (Bloomberg) 02/01/2008

Japan Tobacco Inc., the nation's biggest cigarette company, fell to the lowest in more than 10 months after it recalled frozen pork products imported from China suspected of being contaminated with pesticides. Japan Tobacco shares fell as much as 7.1 percent and traded down 0.7 percent, or 4,000 yen, at 558,000 yen on the Tokyo Stock Exchange, the lowest since March 16. China's Foreign Ministry spokesman, Liu Jianchao, said it had found no evidence of toxic agricultural chemicals in the dumplings. Japan's Health Ministry said eight people had suspected poisoning from eating pork dumplings in the latest food recall by Japanese companies in recent months, following brewer Kirin Holdings Co. and convenience store chain Lawson Inc. China's reputation for food-processing and manufacturing was damaged last year after recalls of lead-painted toys and poisoned seafood. ``The recall costs are negative for the company's earnings,'' said Masayuki Otani, a strategist at Maruwa Securities Co. in Tokyo. Ma