Sony Corp. (6758), Japan’s biggest exporter
of consumer electronics, fell to its lowest level in 24 years in
Tokyo trading on speculation the yen's strength and slumping
demand for television will hurt earnings.
The stock dropped as much as 6.2 percent to 1,413 yen, the
lowest intraday level since June 10, 1987, according to data
compiled by Bloomberg. They changed hands at 1,418 yen at 1:17
p.m. The shares have dropped 52 percent this year.
“Japanese exporters will likely face a severe impact on
their earnings from the yen’s gain against the euro and the
dollar,” Masahiko Ishino, an analyst at Mitsubishi UFJ Morgan
Stanley Securities Co. in Tokyo, said by phone today. “Demand
for TV sets has been also weak, making their earnings outlook
even dimmer.”
Panasonic Corp. (6752), Sony’s closest domestic rival, declined
5.7 percent and Sharp Corp. fell by 5.2 percent today. Japan’s
Topix index is set for its biggest drop since March, after U.S.
consumer spending slowed and incomes unexpectedly dropped in the
world’s biggest economy, damping the earnings outlook for Asia’s
exporters.
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