Nov. 16 (Bloomberg) -- Sony Corp. fell to the lowest level in more than 24 years in Tokyo trading as the yen strengthened against the euro amid concern the European debt crisis is spreading.
The maker of Bravia televisions dropped 3.3 percent to close at 1,308 yen on the Tokyo Stock Exchange, the lowest level since May 1987. The Topix Electric Appliances Index, whose 154 members include Sony and Canon Inc., fell 1.2 percent and was the biggest contributor to a drop in the broader Topix index.
Sony, which this month forecast its fourth straight annual loss, led a decline among Japanese electronics stocks as the euro weakened to the lowest against the yen since Oct. 10. The Bank of Japan cut its economic assessment today as Governor Masaaki Shirakawa called the European debt crisis the biggest risk for the nation’s export-led recovery.
“The currency is another blow for Sony,” Mitsuo Shimizu, an analyst at Cosmo Securities Co. in Tokyo, said by telephone. “An earnings recovery for Sony isn’t anywhere in sight.”
A stronger yen cuts the value of overseas income at Japanese companies when repatriated. Sony gets 21 percent of its sales from Europe.
--Editors: Lena Lee, Michael Tighe
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