Nikkei extends slide as Toyota woes weigh

* Toyota, Toyota-related shares extend losses

* Sharp tumbles after smaller-than-expected profit

* Honda climbs but off earlier gains on bullish outlook

By Elaine Lies

TOKYO, Feb 4 (BestGrowthStock) – Japan’s Nikkei stock average dropped
0.9 percent on Thursday, with Toyota Motor Corp (7203.T: ) sliding
further on its recall woes and Sharp Corp (6753.T: ) tumbling after
reporting a smaller-than-expected quarterly profit.

But Honda Motor Co (7267.T: ) climbed after it lifted annual
guidance far above expectations.

Shares of Toyota, set to report third-quarter results after
the bell, fell some 5 percent and have lost a quarter of their
value since a recent high on Jan. 21, as the U.S. government
stepped up pressure on the company to address a range of safety
issues.

U.S. Transportation Secretary Ray LaHood also advised owners
of recalled vehicles to stop driving their cars, although he
later characterised the remark as a misstatement. [ID:nN03169882]

“Toyota and Toyota group companies are weighing on the
market,” said Takashi Ushio, head of the investment strategy
division at Marusan Securities.

“There have certainly been a lot of good earnings overall,
and more upward forecast revisions than expected, but while this
is supporting the market it’s not enough to push it higher ahead
of U.S. jobs data and amid current doubts about whether world
stock markets have finished with their downward adjustment.”

The benchmark Nikkei (.N225: ) fell 89.85 points to 10,314.48,
after rising 0.3 percent the previous day, while the broader
Topix (.TOPX: ) fell 1.1 percent to 905.63.

“Selling is dominating, with good earnings running their
course after expectations for those results already buoyed the
Nikkei to near 11,000 earlier this year,” said Hiroaki Kuramochi,
chief equity marketing officer at Tokai Tokyo Securities.

Denso Corp (6902.T: ), the world’s biggest listed auto parts
supplier and an affiliate of Toyota, tumbled 8.7 percent to 2,467
yen, despite Denso tripling its annual operating profit forecast
the previous day. [ID:nSGE61209G]

Other suppliers belonging to the Toyota group fell, with
Aisin Seiki Co (7259.T: ) dropping 6.1 percent to 2,232 yen and
Toyota Auto Body Co (7221.T: ), a car assembler, shedding 2.1
percent to 1,543 yen.

Sharp Corp dropped 5.7 percent to 1,068 yen after reporting a
smaller-than-expected quarterly profit, reflecting start-up costs
at its new display panel plant. [ID:nTOE612063]

But Honda rose 2.1 percent to 3,205 yen, although it was off
earlier highs.

Other Japanese companies set to report results later in the
day include Sony Corp (6758.T: ), Hitachi Ltd (6501.T: ) and Nikon
Corp (7731.T: ).

Stock Market

(Additional reporting by Aiko Hayashi; Editing by Edwina Gibbs)

Nikkei extends slide as Toyota woes weigh