(by Dr. Goldfinger)

Tokyo stocks hit their lowest close in eight weeks Tuesday on fears over the outlook for firms such as Sony as Japan’s earnings season heats up, while the dollar was steady ahead of a raft of economic data.

The Nikkei 225 average slipped 1.2 per cent to 11,031.54 while the Topix index was off 1.1 per cent at 1,114.39.

Shares have lost 3.5 per cent since last Thursday and 7.2 per cent since early July as the latest burst of market optimism on Japan’s recovery fades, even though economic growth remains strong.

In recent days, downward pressure on shares has been intensified by the arrival of blue chip earnings season, which has encouraged some investors to step back from buying.

Electronics makers due to report on Wednesday performed poorly, with Sony down 0.5 per cent at Y3,840, NEC off 2 per cent at Y677 and Sharp down 0.8 per cent at Y1,594.

Advantest, a bellwether of sentiment on chipmakers, dropped 3.6 per cent to Y6,180 while Tokyo Electron, a maker of chip manufacturing equipment, fell 3 per cent to Y5,220.