Nikkei slides 2.8 pct on European debt worries

* Nikkei falls below 25-day MA around 11,100

* Exporters hit on fears Greek credit problems could spread

* Toray rises on plan to make carbon fibre car parts

By Rika Otsuka

TOKYO, April 28 (BestGrowthStock) – Japan’s Nikkei average slid 2.8
percent on Wednesday, with exporters taking a beating after
downgrades of Greece and Portugal’s credit ratings sparked fears
the euro zone’s debt problems were spreading.

Shares of blue-chip exporters including Honda Motor Co
(7267.T: ) and Canon Inc (7751.T: ) dropped after rating agency
Standard and Poor’s slashed Greet debt to junk status on Tuesday
and also downgraded Portugal, fuelling concerns about the euro
zone economic stability. [ID:nLDE63P0LU]

“The biggest factor behind today’s fall is worries that
credit problems could spread to other parts of Europe,” said
Masayoshi Yano, a senior market analyst at Meiwa Securities.

“Investors now fear that credit woes started in Greece could
slow down the whole European economy.”

The benchmark Nikkei (.N225: ) dropped 311.74 points to
10,900.92, falling below its 25-day moving average, now around
11,100 and its first fall in three days.

The broader Topix (.TOPX: ) lost 2.3 percent to 974.97.

The slide in Tokyo stocks follows a tumble for U.S. shares
which posted their worst day in nearly three months on Tuesday
following downgrades of Greece and Portugal, and as a grilling of
Goldman Sachs on Capitol Hill heightened the possibility of
financial reform. [.N]

Honda Motor skidded 3 percent to 3,235 yen and Canon Inc
(7751.T: ) lost 3.1 percent to 4,250 yen. Industrial robot maker
Fanuc Ltd (6954.T: ) shed 4.5 percent to 11,140 yen.

But Toray Industries (3402.T: ) rose 2 percent to 555 yen after
the textile maker said it and German carmaker Daimler AG
(DAIGn.DE: ) will jointly develop carbon fibre car parts.

Stock Market Basics

(Reporting by Rika Otsuka)

Nikkei slides 2.8 pct on European debt worries