Japanese stock market hit by Sony losses

JAPAN’S Nikkei index fell for the seventh consecutive session yesterday, enduring its worst run in three years after Sony more than doubled its loss forecast for the year, in the wake of renewed fears over European sovereign solvency.

Average share prices dropped by 0.8 per cent, with the index closing down 79.28 points at 9,458.74, hitting a two-month closing low.

The drop was precipitated by concerns over Italian and Spanish government finances that dampened investor confidence and a firming of the yen.

This was compounded by a trio of Japanese electronics giants flagging greater than expected losses. On Tuesday Sony doubled its predicted net loss for the last financial year to a record ¥ 520bn (£4bn), signalling the company’s fourth straight year in the red.

Shares in manufacturers Sharp and Panasonic tumbled in tandem with Sony. The firms have forecast losses of ¥ 380bn and ¥ 780bn respectively.