By Stuart Wallace June 2 (Bloomberg) -- The yen weakened after Japanese Prime Minister Yukio Hatoyama quit. Stocks declined in Europe, led by energy companies, while U.S. futures fluctuated. The yen depreciated against all but three of the 16 most- traded currencies tracked by Bloomberg at 10:21 a.m. in London. The Stoxx Europe 600 Index retreated 1.2 percent, with the 38- member oil and gas group dropping 2 percent. The MSCI Asia Pacific Index lost 1.1 percent and Standard & Poor’s 500 index futures added 0.1 percent. Copper fell for the first time in three days and gold slumped for the first time in eight days. Japan’s Hatoyama said he’ll step down, less than two months before elections, raising concerns that the world’s second- largest economy will continue to sputter at the same time that China takes steps to cool growth and Europe struggles amid record deficits. The U.S. Justice Department yesterday said it’s investigating whether any criminal or civil laws were violated when a drilling rig leased by BP exploded in the Gulf of Mexico in April. The biggest oil spill in U.S. history may damage the prospects of other energy companies seeking to operate offshore. Hatoyama’s resignation is “sending the yen lower across the board,” a team of strategists at Societe Generale SA led by London-based Vincent Chaigneau wrote in a report today. “The yen could remain under pressure in the very near term as political uncertainty remains elevated.” The yen declined 0.8 percent versus the dollar and 0.7 percent compared with the euro. Europe’s single currency dropped 0.1 percent versus the dollar. The pound weakened 0.3 percent versus the euro and 0.2 percent against the dollar after U.K. insurer Prudential Plc abandoned its $35.5 billion takeover of American International Group Inc.’s main Asian unit. Stricter Regulations The Nikkei 225 Stock Average dropped 1.1 percent as Sony Corp. sank 2.8 percent in Tokyo. Mitsui & Co., which owns a stake in a BP oil field in the Gulf of Mexico slumped 8.3 percent amid concern about stricter regulations on companies operating in the region. Bank of China Ltd. tumbled 6.6 percent in Shanghai on speculation a convertible bond sale will dilute shareholders’ stakes. More than 11 shares fell for every one that rose on Europe’s Stoxx 600. BP slipped 3 percent in London, extending yesterday’s 13 percent slide, the biggest since 1992. CGG- Veritas and Petroleum Geo-Services ASA, which provide surveys of oil and gas fields, dropped more than 2 percent in Paris and Oslo. Prudential, the U.K.’s biggest insurer, slipped 2.8 percent. Futures Fluctuate U.S. futures fluctuated before a report that may show the number of contracts to purchase previously owned homes rose in April for a third consecutive month as buyers rushed to lock in a government tax credit. The index of pending-home purchases climbed 5 percent following a 5.3 percent gain a month earlier, according to the median forecast in a Bloomberg News survey of 40 economists. The National Association of Realtors report is due at 10 a.m. in Washington. Emerging-market stocks fell for a second day, the first back-to-back decline in two weeks. The MSCI Emerging Markets Index lost 0.7 percent, with commodity producers leading the retreat. Gold Fields Ltd. and Harmony Gold Mining Ltd. dropped at least 1.8 percent in Johannesburg, while OAO GMK Norilsk Nickel slipped 1.3 percent in Moscow. Copper for delivery in three months declined 2.3 percent to $6,597 a metric ton on the London Metal Exchange. Aluminum, nickel and zinc also retreated. Gold for immediate delivery fell 0.4 percent to $1,220.70 an ounce. Crude oil for July delivery slumped 1 percent to $71.85 a barrel in New York trading. Bond markets were mixed with Treasuries snapping two days of gains, pushing the 10-year note yield two basis points higher to 3.28 percent. The yield on the German 10-year bund, Europe’s benchmark government security, declined three basis points to 2.64 percent. U.K. gilts were little changed, with the 10-year yield dropping one basis point to 3.56 percent. The cost of insuring against a default by Italy rose to a record, with credit-default swaps tied to the nation’s bonds climbing 7 basis points to 239, according to CMA DataVision prices. To contact the reporter on this story: Stuart Wallace in London at swallace6@bloomberg.net

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