Reuters is reporting Nikkei falls 7.3 pct on economy fears, Toyota report.

The Nikkei average fell 7.3 percent to a 5-year low on Wednesday as fears about a global recession intensified with Toyota Motor Corp diving on reports it may miss its profit estimates, while a firmer yen added to the pain.

The Indonesia Stock Exchange halted trading on Wednesday after the benchmark composite index .JKSE dropped by more than 10 percent, while Hong Kong’s main stock market index .HSI dropped more than 5 percent.

Toyota tumbled 10.5 percent to 3,320 yen after the Nikkei business daily said it is likely to post a 40 percent slide in annual profit, missing its current estimate on weak sales in North America and slower growth in China.

Analysts said that even at lower valuations, investors would still shun the market as more companies are expected to cut their earnings forecasts.

The projected price-earnings ratio of the Nikkei stock average tumbled to a 37-year low at 12.5 times on Tuesday, according to the Nikkei business daily.

Among exporters, Advantest Corp, the world’s No.1 maker of chip testers, tumbled 11.3 percent to 1,603 yen, while Honda Motor Corp sank 8.6 percent to 2,350 yen.

Shares of Nippon Steel lost 11.3 percent to 283 yen, while shipping firm Mitsui OSK Lines shed 13.7 percent to 615 yen.

Another Asia Bloodbath

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Chart courtesy of Yahoo Finance.

Mike “Mish” Shedlock
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