TOKYO - JAPAN'S Nikkei average slid 6.5 per cent on Thursday to its biggest one-day loss in nearly two weeks, with exporters hit by a stronger yen amid fears for the global economy, which brought a quick end to Obama euphoria.

Automakers tumbled, with Toyota Motor diving 10.4 per cent on worries about sliding earnings due to the global financial crisis, while while rival Isuzu Motors plunged 20.7 per cent after it cut its outlook and a brokerage downgrade.

Underscoring the worries of the firms central to Japan's export-centred economy, Honda Motor Chief Executive Takeo Fukui said Japanese authorities should intervene in the currency market to prevent wild fluctuations in the yen.

The benchmark Nikkei fell 622.10 points to 8,899.14 in light trade for its biggest one-day loss since Oct 24. The broader Topix slid 6 per cent to 909.30, with investors quickly forgetting the bounce seen a day earlier from the election of Mr Barack Obama as US president.

'With the election over, the eyes of investors are turning to the economy, with a sense that nothing quick can be done to stop the global economic slide,' said Mr Hideyuki Ishiguro, a supervisor at the investment strategy department of Okasan Securities.

'Over the preceding six trading days, the Nikkei rose nearly 2,000 points, with investors snapping up shares that had been sharply sold regardless of things such as earnings. But now earnings are determining their choices to buy or sell.'

Toyota said after the close that had slashed its 2008/2009 group net profit forecast to 550 billion yen (S$8.3 billion) from 1.25 trillion yen. Its second quarter group net profit was 139.80 billion yen, down 69 per cent year on year.

Grim economic news in the United States included a report that showed deep cuts in employment by private employers in October and data that showed the vast service sector contracted sharply last month as the worst financial crisis in 80 years roiled the world's largest economy.

But some Tokyo market players said the Nikkei's fall was partly due to simple profit-taking after stocks climbed from the low of 6,994.90 on October 28.

'You have some shares already up substantially, so wanting to take profits is only natural, especially since gains are seen capped at around 9,500', said Mr Hiroaki Osakabe, a fund manager at Chibagin Asset Management.

Toyota tumbles
Market players were divided on the longer-term impact from the Toyota earnings, with some saying prior to their announcement that poor results were factored in but others saying a negative impact on the broader market was unavoidable.

'In particular, there's likely to be a ripple effect on car parts makers and similar shares. Plus Toyota's price-to-book ratio is higher than that of some other automakers, so it isn't exactly that cheap,' added Mr Osakabe.

Toyota fell to 3,810 yen, Isuzu to 161 yen and Honda slid 9.8 per cent to 2,475 yen. Nissan Motor lost 9 per cent to 455 yen.

Other blue-chip exporters also fared badly as the dollar slipped below 98 yen.

Canon fell 12.6 per cent to 3,470 yen, Sony slid 11.1 per cent to 2,295 yen and Panasonic lost 8.5 per cent to 1,589 yen.

Tech shares suffered as well after US technology bellwether Cisco Systems Inc warned that its revenue could fall 10 per cent in the current quarter.

Kyocera lost 8.9 per cent to 5,530 yen and Elpida Memory , which also reported its first-half results after the close, fell 6.5 per cent to 630 yen.

Trade was light on the Tokyo exchange's first section, with 2.38 billion shares changing hands, compared with last week's daily average of 3.01 billion.

Declining stocks outpaced advancing ones by nearly 7 to 1. -- THOMSON REUTERS