Sony Stock Falls As Japanese Stock Market Tumbles

Sony’s stock is not only reaching 10 and 15 year lows in the American markets, but is now tanking in other markets including their country of origin. Japanese stocks have nosedived and had their worst week ever, with a great reduction in value across the board. A drop in US retail sales was a primary reason for the woes and indicated that this global recession is not yet ready to recover. “The American spending spree we’ve seen in the past few years has totally evaporated,” said Yoshinori Nagano, a Tokyo- based senior strategist at Daiwa Asset Management Co., which manages $96 billion. “The earnings outlook for auto manufacturers and electronics makers is particularly harsh.”

Sony Corp. dived 13 percent to 2,320 yen. The Nikkei 225 Stock Average declined 1,089.02, or 11 percent, to close at 8,458.45 in Tokyo, the second-steepest plunge in its 59-year history. Sales at U.S. retailers fell 1.2 percent in September, the most since August 2005 and extending a drop to a third month, the first time that’s happened since 1992. That coincided with the Federal Reserve’s release of its Beige Book report, which said economic activities weakened last month throughout the country.