By Masaki Kondo and Kotaro Tsunetomi Nov. 7 (Bloomberg) -- Japanese stocks fell a second day after Toyota Motor Corp. more than halved its profit forecast and U.S. jobless claims jumped to a 25-year high. Toyota, the world's second-biggest automaker, slumped 9.5 percent, while its car-parts affiliate Denso Corp. dived 11 percent. Olympus Corp., an endoscope maker that counts Europe as its biggest overseas market, sank 5.1 percent after the stronger yen prompted it to slash its profit target. Inpex Corp., Japan's largest oil and gas explorer, lost 7.2 percent after crude fell to the lowest level in 19 months. Drugmaker Shionogi & Co., which posted a first-half profit gain on Nov. 4, jumped 6.8 percent. The Nikkei 225 Stock Average slid 51.65, or 0.6 percent, to 8,847.49 as of 1:42 p.m. in Tokyo, paring an earlier 7.1 percent decline. The broader Topix index fell 10.75, or 1.2 percent, to 898.55. The Nikkei, down 43 percent on the year, headed for a weekly gain of 2.8 percent, while the Topix was set for a 3.3 percent advance. ``With stocks falling by such a degree, long-term investors are inclined to buy in rather than staying on the sidelines with cash,'' said Hiroshi Morikawa, a Tokyo-based senior strategist at MU Investments Co., which manages about $14 billion in Tokyo. Nikkei futures expiring in December dipped 0.2 percent to 8,780 in Osaka and slumped 1 percent to 8,780 in Singapore. To contact the reporter for this story: Masaki Kondo in Tokyo at mkondo3@bloomberg.net.

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