Japan Stocks Drop

Japanese stocks slumped, trimming gains on the Nikkei 225 Stock Average’s best week this year, as a record drop in factory production and forecast cuts at Toshiba Corp. and Nintendo Co. pointed to a worsening recession.
TradingEconomics.com, Bloomberg 1/29/2009 6:07:11 PM

Nintendo tumbled 12 percent after lowering its sales target for the Wii game machine and projecting its first profit drop in five years. Toshiba Corp., Japan’s largest chipmaker, plunged 11 percent after forecasting a record loss and Goldman Sachs Group Inc. said the company may have to raise new capital. Fanuc Ltd., the world’s No. 1 industrial-robot maker, dived 6.3 percent after manufacturers cut production at an unprecedented pace last month.

The Nikkei 225 sank 248.44, or 3 percent, to 8,002.80 as of 10:05 a.m. in Tokyo, ending a three-day advance. The broader Topix index fell 20.29, or 2.5 percent, to 798.18. The Nikkei headed for a 3.3 percent weekly gain, the most since the period ended Dec. 19, on optimism President Barack Obama’s stimulus package will ease the global recession.