Nikkei plunges 3.55% to 16-month low on yen fears, U.S. economy (2)

"Although the U.S. spending data yesterday wasn't bad, it's the indicators out later this week that are the really important ones, and predictions for these are really raising fears about the economic recovery," said Takashi Ushio, head of the investment strategy division at Marusan Securities.

High tech and exporter related issues, easily swayed by the economic environment, took a pummeling Tuesday with Elpida Memory Inc., Japan's sole maker of computer-memory chips, plunging 7.3 percent to 1,009 yen.

Goldman Sachs Group Inc. lowered its operating profit forecast for this fiscal year for the firm to 114 billion yen (1.35 billion U.S. dollars) from 144 billion yen, citing weaker demand for personal computers and a delay in the recovery of computer production in Taiwan, according to a recent report.

Sony Corp. relinquished 3.7 percent to 2,368 yen and Sharp Corp. sank 5.1 percent to 804 yen, the lowest close since April 2009.

Sony may cancel a plan to raise its stake in a Sharp display- panel unit to 34 percent from 7 percent, the Nikkan Kogyo ( Business &Technology Daily News) reported.

Kyocera Corp. retreated 4 percent to 7,140 yen and Canon Inc. fell 4.5 percent to close at 3,425 yen.

Japanese automakers were also among the day's decliners with Honda falling 2.7 percent to 2,779 yen and Toyota skidding down 2. 4 percent to 2,860 yen.

With crude oil for October delivery declining 0.6 percent in New York on Monday, Japan Petroleum found itself in negative territory, losing 4.3 percent to 3,030 yen and Inpex Corp., the nation's largest oil and gas explorer, falling 2.8 percent to 380, 000.

Digital Garage Inc. marked a rare bright spot on Tuesday however, climbing 5.4 percent to 151,000 yen. The provider of the Twitter blog service in Japan gained after the Nikkei newspaper said Twitter Inc. will post a profit in its Japanese business.

Some 1.59 billion shares changed hands on the Tokyo Exchange's First Section, up from Monday's volume of 1.54 billion shares, with declining issues outpacing advancing ones by 1,598 to 50.Source:Xinhua
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