Drop linked to Wall Street
TOKYO — Shares of Sony Corp. hit a low for the year in Tokyo amid speculation that its operating profit will drop for the second straight quarter and because of the fall on Wall Street.
Sony dropped to 9,900 yen (U.S. $71) Tuesday on the Tokyo Stock Exchange, surpassing the low of 10,400 yen posted on March 13. By midday, Sony was trading at 10,050, down 260 yen from Monday’s 10,310.
Market players said there is a growing impression that Sony will finally be hit by the economic crisis in Asia and suffer declining profits for the April-June quarter of this year.
They also said that Sony is taking a beating on Tokyo because of the drop of shares in New York. Sony is one of the few stocks on the Tokyo exchange that has thrived in Japan’s recession and this has caused local market players to link its Tokyo value to movements on Wall Street.