*Nikkei tumbles 4.5 pct to below 10,000
*Hits lowest point since late 2003 on economy worry, yen
*Toyota down nearly 7 pct on report about profit fall
(Adds stocks, details)
By Aiko Hayashi
TOKYO, Oct 8 (Reuters) - The Nikkei average slid 4.5 percent
on Wednesday as fears about a global recession intensified with
Toyota Motor Corp <7203.T> skidding on reports that it would miss
profit estimates, while a firmer yen addded to the pain.
Steelmakers such as Nippon Steel Corp <5401.T> and shipping
firms also led the market lower on worries about the health of
the global economy.
"The deteriorating outlook for the economy and the deepening
financial crisis are pushing fears to their limit," said
Mitsushige Akino, chief fund manager at Ichiyoshi Investment
Management.
"Investors want to dump some shares as their willingness to
take risks has decreased, while no one wants to buy even if
stocks are valued cheaply."
The benchmark Nikkei <> shed 460.78 points to 9,695.12.
At one point it fell to its lowest level since November 2003.
The broader Topix <> lost 4.3 percent to 935.40, hitting
its lowest point since August 2003.
The dollar was little changed from U.S. trade at 101.45 yen
<JPY=>, holding above a six-month low of 100.22 yen struck on
trading platform EBS earlier in the week.
Toyota tumbled nearly 7 percent to 3,460 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.
"Investors are not selling because Japanese stocks are good
or bad, but because of the credit squeeze," said Kenichi Hirano,
operating officer at Tachibana Securities.
"I see around 9,300 as the possible bottom for the Nikkei
average, considering projected corporate earnings for the year
ending March 2009."
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.
EXPORTERS HIT
Among exporters, Advantest Corp <6857.T>, the world's No.1
maker of chip testers, tumbled 8.9 percent to 1,647 yen and
electronics parts maker Kyocera Corp <6971.T> lost 4.4 percent to
6,880 yen.
Honda Motor Corp <7267.T> sank 6.2 percent to 2,410 yen.
Financial shares also took a beating, with top lender
Mitsubishi UFJ Financial Group <8306.T> down 5.1 percent at 770
yen and No.2 Mizuho Financial Group <8411.T> sliding 5.1 percent
to 371,000 yen.
Shares of Nippon Steel lost 7.5 percent to 295 yen.
Trade was moderate on the Tokyo exchange's first section,
with 1.1 billion shares changing hands, compared with last week's
morning average of 910 million.
Declining stocks outpaced advancing ones by more than 16 to
1.
(Reporting by Aiko Hayashi; Editing by Edwina Gibbs)
