Japanese shares drop on Toyota outlook

“The market was feeling the impact of Toyota's reports today, and investors were turning cautious, taking a wait-and-see stance ahead of more corporate results next week”

Japanese shares dropped Friday as selling spread across the board following Toyota's bleak earnings projection.

The benchmark Nikkei 225 index sank 287.92 points, or 2.06 percent, to 13,655.34.

'Investors were spooked by Toyota's sluggish earnings reports and its weak profit outlook,' said Tsuyoshi Segawa, an equity strategist at Shinko Securities Co. in Tokyo.

Just as markets closed Thursday, Toyota said its net profit in the fiscal fourth quarter dropped 28 percent due to a strong yen and sluggish U.S. sales. It also projected this fiscal year's profit will tumble 27 percent _ which would be its first decline in annual earnings in seven years. Read more