* Nikkei slides 4 pct after drop in U.S. stocks
* Machinery stocks sink as machine orders log a record fall
* Nissan down after news of loss warning
(Adds stocks, details)
By Aiko Hayashi
TOKYO, Jan 15 (Reuters) - Tokyo's Nikkei share average slid 4
percent on Thursday after worries about a deeper recession sent
U.S. stocks to six-week lows, while machinery makers sank after
Japan's machinery orders logged a record fall.
Nissan Motor Co <7201.T> slid as it became the latest
blue-chip firm set to post an annual operating loss. A company
source said Japan's third-largest automaker will post an
operating loss instead of a previously forecast profit, hurt by
sliding sales and a soaring yen. []
Bridgestone Corp <5108.T> and other tyre makers tumbled after
Goldman Sachs cut its stance on the sector, citing slowing
demand, rising inventories, production cuts, the risk of falling
prices and high valuations.
"A series of overseas factors such as the deteriorating U.S.
economy and worries about bank earnings around the world are
hitting shares in Japanese exporters and banks," said Soichiro
Monji, a chief strategist at Daiwa SB Investments.
"The machinery data hurt machinery shares, but its impact on
the overall market is not so large as it was expected to be
dismal."
The Nikkei <> shed 335.68 points to 8,102.77, after
falling as much as 4.5 percent at one stage to hit its lowest
point in about a month. The broader Topix <> declined 2.5
percent to 799.24.
Machinery orders in Japan, a key gauge of corporate capital
spending, dropped by a record 16.2 percent in November from the
previous month, the latest sign that the country faces a
deepening recession. [] []
U.S. stocks slid on Wednesday, with Citigroup <C.N> shedding
more than 23 percent as it is expected to post a
multibillion-dollar loss this week. []
Adding to the gloom, sales at U.S. retailers fell 2.7 percent
in December as the economic slowdown made consumers cut back on
spending during retailers' crucial holiday selling period.
[]
"Today's fall reflected a dire mood in the U.S. market," said
Kenichi Hirano, operating officer at Tachibana Securities.
"But investors selling stocks may be running a risk if they
continue to do so because a strong rally is likely in the next
week or two in festive trade in the U.S. as the new
administration takes office."
MACHINERY MAKERS HIT
Komatsu Ltd <6301.T>, the world's second-biggest earth-moving
equipment maker, dropped 4.8 percent to 1,085 yen, while Kubota
Corp <6326.T> slid 4.2 percent to 528 yen and Okuma Corp
<6103.T>, a leading machine tool manufacturer, declined 6.8
percent to 328 yen.
Other exporters also fell amid worries about the global
economic downturn. Advantest Corp <6857.T>, world's top maker of
chip testers, sank 8.7 percent to 1,227 yen and digital camera
maker Canon Inc <7751.T> shed 4.8 percent to 2,805 yen.
Nissan shares fell 4 percent to 312 yen.
Shares of Bridgestone fell 5.6 percent to 1,260 yen, while
Sumitomo Rubber Industries Ltd <5110.T> lost 8.3 percent to 640
yen and Yokohama Rubber Co <5101.T> tumbled 7.9 percent to 375
yen.
Tokyo's rubber products subindex <.IRUBR.T> index slid 5.7
percent, making it the worst performing of all 33 sectors.
Trade was light on the Tokyo exchange's first section, with
950 million shares changing hands, compared with last week's
morning average of 1.1 billion.
Declining stocks outnumbered advancing ones by more than 3 to
1.
(Reporting by Aiko Hayashi; Editing by Edwina Gibbs)
