Nikkei drops on stronger yen; Sony, Credit Saison tumble
* Sony stumbles on loss forecast * Credit Saison biggest pct loser, trader says foreigners selling * Strong GDP offers little help amid worries about tax impact from April - trader By Ayai Tomisawa TOKYO, May 15 (Reuters) - Japan's Nikkei share average dropped on Thursday morning after declines on Wall Street and a stronger yen hurt sentiment, while Sony Corp tumbled after it disappointed the market with a loss forecast. Sony dropped 6.9 percent to a three-month low and was the second most traded stock by turnover after it forecast a net loss for a second year in a row for the year through March. "It's a structural issue," said a senior trader at a foreign securities firm. "Foreign investors had bought it (Sony stock) on the anticipation of some kind of broad changes based on Third Point's investment in this company ... but nothing has happened with Sony." The trader also said foreign investors were turned off by a slew of other poor earnings and were placing sell orders on such stocks as Credit Saison Co, which dived 15 percent after releasing disappointing earnings. Credit Saison was the biggest percent loser on the board. The Nikkei was down 1.4 percent at 14,202.28 in midmorning trade, falling below its 25-day moving average of 14,312.96. Japan's strong first-quarter gross domestic product data did little to help the stock market as investors remained wary about how the tax hike in April will affect the economy from the April-June period. "We knew that there would be strong demand from rush buying before the April tax hike," said Nobuhiko Kuramochi, a strategist at Mizuho Securities. "People are cautious about how the tax hike will affect the current quarter and beyond." Japan's economy grew 1.5 percent in January-March from the previous quarter, posting its biggest expansion since July-September 2011, as consumer spending jumped ahead of an April 1 sales tax increase. Capital spending also grew far faster than expected. Exporters weakened after the dollar slipped 0.1 percent to 101.80 yen. Toyota Motor Corp dropped 1.6 percent, Panasonic Corp declined 1.6 percent and Nikon Corp shed 1.2 percent. The broader Topix dropped 1.1 percent to 1,169.84, while the new JPX-Nikkei Index 400 slipped 1.1 percent to 10,645.53. (Editing by Chris Gallagher)
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