TOKYO, Dec 2 (Reuters) - Japan's Nikkei average tumbled 5.3
percent on Tuesday to a 10-day low as exporters such as Honda
Motor Co skidded on a strengthening yen amid growing fears about
the global economy.
U.S. stocks slid on Monday after data showed factory activity
fell to its weakest since 1982 and Federal Reserve Chairman Ben
Bernanke said the U.S. economy remained under considerable
strain.
The dollar briefly fell below 93 yen to a five-week low in
early trade, as plunging equity prices prompted investors to
reverse risky trades.
"The key to the Nikkei today is what currencies do, with the
Nikkei likely to manage to hold around the 7,700 level if the
dollar doesn't fall back to the 92-yen level," said Yutaka Miura,
senior technical analyst at Shinko Securities.
"Though there are many expectations for the cabinet of (U.S.
President-elect Barack) Obama, the severity of the economic
situation has become increasingly clear."
The benchmark Nikkei shed 452.08 to 7,945.14 after earlier
falling to 7,919.32, its lowest since Nov. 21, while the broader
Topix was down 4.7 percent to 787.91.
High tech exporters suffered after their U.S. peers plunged
after the release of a report showing global semiconductor sales
fell 2.4 percent in October, with a U.S. index of chip stocks
tumbling 7.6 percent.
Kyocera Corp fell 5.5 percent to 5,540 yen and TDK Corp slid
7.7 percent. Advantest Corp lost 6 percent to 1,133 yen.
Honda fell 7.7 percent and fellow exporter Canon Inc shed 5.7
percent to 2,660 yen. Panasonic Corp lost 6.3 percent to 1,077
yen.
(Reporting by Elaine Lies; Editing by Edwina Gibbs)
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