ASIA MARKETS: Toyota, Bridgestone Pace Tokyo's Decline

Japanese stocks dropped sharply Wednesday as trading resumed after a one- day holiday, with Toyota Motor Corp. sliding over the auto giant's earlier forecast for its first operating loss since the Second World War, while Bridgestone Corp. added to the selling pressure after slashing its profit outlook.

The Nikkei 225 Average fell 2.4% to 8,514.24, while the broader Topix index fell 2.4% to 828.54.

South Korean shares also declined, with the benchmark Kospi losing 2.6% to 1, 114.48 in Seoul.

The decline came in the wake of extended losses on Wall Street and weak economic and housing data from the U.S. overnight.

Australian shares advanced however, bouncing back from declines in the previous two sessions, with the S&P/ASX 200 index rising 0.9% to 3,564.10 in Sydney.

New Zealand's NZX 50 index added 0.4% to 2,672.91.

Taiwan's Taiex fell 1.7% to 4,329.97, and Singapore's Straits Times Index slipped 0.7% to 1,713.02 in early trading.

Toyota (TM) stock fell 4.2% in Tokyo, after the company said Monday it expects a group operating loss of 150 billion yen ($1.7 billion) for the fiscal year ending March 31, compared to a 2.27 trillion yen profit a year earlier.

The company also cut its net income projection to 50 billion yen, 91% down from its earlier estimate, in addition to lowering its unit-sales target to 7.54 million vehicles from 8.24 million units.

Shares of Bridgestone (BRDCY) dropped 5.1%, after the tire maker cut its net income forecast for 2008 to 12 billion yen from 66 billion yen on dropping sales, a strong yen and a write-down of some U.S. assets.

In Seoul, Hyundai Motor Co. (HYMLF) dropped 6.5%, and Kia Motors Corp. (KIMTF) lost 6.9%, on top of their double-digit percentage declines in the previous session, after they also cut their sales forecast earlier this week.

National Australia Bank (NABZY) shares gained 0.7% after the banking major said discussions to purchase Wizard's brand name, distribution network and prime mortgages had ended, as its offer wasn't accepted.

Shares of Commonwealth Bank of Australia (CBA.AU), however, fell 0.9% after the bank said it will acquire up to A$4 billion of home loans originated by Wizard.

In Asian currency trading, the U.S. dollar changed hands for 90.52 yen, compared with 90.57 yen Tuesday.

February crude-oil futures rose 56 cents to $39.54 a barrel in electronic trading, after falling 93 cents to $38.98 a barrel on the New York Mercantile Exchange.

Overnight on Wall Street, the Dow Jones Industrial Average (DJI) fell 1.2% to 8,419.49, and the S&P 500 Index (SPX) gave up 1% to 863.16, while the Nasdaq Composite (RIXF) shed 0.7% to 1,521.54.

The decline came after data showed the U.S. economy contracted at a 0.5% annual rate in the third quarter, unrevised from last month's preliminary estimate.

Data also showed re-sales of U.S. single-family homes and condos fell a greater-than-expected 8.6% in November to a seasonally-adjusted annual rate of 4.49 million, even as home prices dropped at the fastest annual pace on record.

Source : Here