Skip to main content

Asia markets dive on Toyota losses

  • Story Highlights
  • Toyota reports overall loss of 4 percent for the year as warned in December
  • Financial stocks also impacted by Britain's announcement of second bailout
  • European markets closed lower Monday
  • Next Article in World Business »
Decrease font Decrease font
Enlarge font Enlarge font

(CNN) -- Asian markets slid sharply, as Japanese auto giant Toyota reported its first loss as a public company.

Japan's Nikkei index, the Hang Seng in Hong Kong and Australia's All Ordinaries indices were all off more than 3 percent in afternoon trades. In China, Shanghai's SSE composite was down nearly 1.4 percent, while the South Korean KOSPI index dipped almost 2.4 percent.

Toyota warned in December that it expected to end 2008 with a loss and verified that prediction Tuesday with an overall loss of 4 percent for the year. Japanese sales were also off 5 percent and international receipts down 4 percent, Japan's largest automaker reported.

Last week Toyota announced it would idle all 12 of its wholly owned factories in Japan for an extra 11 days in response to the slumping auto market. Its leading rival, Honda, said it would eliminate its entire force of temporary, part-time workers at the end of April and cut domestic production back 10 percent.

Financial stocks also appeared to falter thanks to the announcement Monday that Britain would launch a second bailout of its banking system. European shares closed lower Monday after the Royal Bank of Scotland's announcement that it would post a 2008 loss of up to $41.3 billion -- the biggest in British corporate history.

  • E-mail
  • Save
  • Print