(RTTNews) - The Japanese stock market was trading sharply lower for the second consecutive session on Friday after U.S. stocks tumbled overnight on mounting recession fears. Investor confidence also eroded after automaker Toyota slashed its full-year earnings forecast by more than half, while exporters were dragged down by a stronger yen.

At 7.22 P.M. ET, the benchmark Nikkei 225 Index was losing 445.86 points or 5.01% to 8,453.28 and the broader Topix Index of all First Section Issues was down 48.12 points to 861.18.

The Japanese stock market plummeted on Thursday, recording its biggest one-day loss in nearly two weeks, as a stronger yen hit exporters amid renewed fears about a global economic slowdown. The Nikkei 225 index fell 622.1 points or 6.5% to close at 8,899.1 and the Topix index closed down 57.6 points or 6.0% at 909.3.

The U.S. stocks closed sharply lower on Thursday for the second straight session, following substantial weakness in the European markets after massive rate cuts by the Bank of England and the European Central Bank, combined with disappointing economic reports and significant reductions in same store sales at many major retailers.

Crude oil continued its sharp drop on Thursday and reached its lowest level in more than one-and-a-half years. Light sweet oil closed at $60.77 on the New York Mercantile Exchange, down $4.53 for the session.

In the currency market, the U.S. dollar was trading in the mid 97 yen-level on Friday. In early trades, the dollar was quoted in a range of 97.41-97.46 yen, down 0.49 yen from Thursday’s close in Tokyo.

In the banking sector, Mitsubishi UFJ lost 5.54%, Mizuho Financial slid 6.65%, Sumitomo Mitsui dropped 7.03% and Resona Holdings plummeted 7.20%.

Among export-oriented stocks, Sony plunged 8.28% and Nikon shed 9.30%. Automaker Honda lost 5.05% and Mazda plummeted 11.16%. Toyota reported a 69% drop in its profit for the second quarter and slashed its profit outlook for fiscal year 2009 by more than half, citing deterioration in market conditions. The company’s shares were bid lower.

In the tech space, Advantest dropped 7.74%, Fanuc plunged 12.44% and Kyocera tumbled 7.23%.

In the oil sector, Inpex Holdings dropped 11.18%, Showa Shell lost 3.51% and Nippon Oil slid 3.33%. Trading house Marubeni slid 7.40%, Itochu tumbled 5.66% and Sojitz shed 6.06%.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2008 RealTimeTraders.com, Inc. All Rights Reserved

Posted in Categories: Eurozone, Japan, Releases, Stocks, UK, USA.

Subscribe by RSS Subscribe by Email