Tokyo stocks down 1.62% by break

TOKYO– Tokyo stocks fell 1.62 percent by the break on Friday after the European Central Bank dashed hopes of immediate action to solve the eurozone crisis.

The Nikkei 225 index at the Tokyo Stock Exchange lost 139.98 points to 8,513.20 by the break while the Topix index of all first-section issues gave up 1.75 percent, or 12.80 points, to 720.18.

Shares in electronics giant Sharp, which makes up the benchmark Nikkei 225 average, plunged 30 percent a day after report a huge quarterly loss and a grim business outlook as well as the slashing of 5,000 jobs.

The overall market sentiment was dampened after the ECB held off announcing any immediate measures to solve the region’s debt crisis, sending US and European stocks down along with the euro.

“We’re seeing an unwinding of last week’s ‘risk-on rally’ after ECB president (Mario) Draghi pledged support for the euro at all costs,” said an equity trader at a foreign brokerage.

“Coupled with deterioration on the corporate earnings front from the likes of Sony and Sharp, investors may be coming to the conclusion that it may be too early to jump into equities at the moment,” the trader told Dow Jones Newswires.

Sony was down 8.50 percent to 882 yen after slashing its net profit view for the year to March 2013 by one-third to 20 billion yen.

All Nippon Airways fell 2.77 percent to 175 yen ahead of its announcement of April-June earnings. Its rival Japan Airlines on Friday won approval from the Tokyo exchange for relisting its shares after restructuring since its bankruptcy in 2010.

The euro bought $1.2172 and 95.16 yen in Tokyo midday trade, compared with $1.2178 and 95.26 yen in New York late Thursday. It is significantly down from the $1.2250 and 96.12 in Asia Thursday before the ECB meeting.

The dollar was at 78.15 yen against 78.22 yen.