Nikkei sharply down in early trade

TOKYO _ Japan's key stock index dropped more than 4 percent in early trade Friday, pressured by lingering fears over a global recession and a rising yen.

The benchmark Nikkei 225 stock average shed 400.56 points, or 4.73 percent, to 8,060.42 as of 10:00 am (0100 GMT), bucking modest gains on Wall Street Thursday.

"Investors remain worried over growing uncertainty about the state of the global economy," Yutaka Miura, senior strategist at Shinko Securities.

In Tokyo, investors dumped export-linked shares on the back of a soaring yen against the dollar. A strong yen cuts the value of repatriated profits by Japanese exporters.

Sony Corp. on Thursday blamed the unfavorable currency and a slump in global demand for its dismal earnings forecasts. The company drastically lowered profit and sales projection Thursday with profit for the fiscal year ending March 2009 seen at 150 billion yen (US$1.5 billion), down 59 percent from the previous year.

The broader Topix index was down 4.24 percent at 834.71 in early trade Friday.

The Nikkei stock index closed almost 2.5 percent lower Thursday, retreating for a second session on worries over sluggish corporate earnings reports amid a downturn at home and abroad.