Asia markets fall; Nikkei drops 2 pct on Toyota's bad news

The benchmark Nikkei 225 index sank 2.1 percent to 13,655.3. Hong Kong's blue-chip Hang Seng Index fell 1.5 percent to 25,063.2, extending its losing streak to a third straight session.

In Tokyo, sentiment was downbeat throughout the day following Toyota Motor Corp.'s revelation Thursday that fourth-quarter profits dropped 28 percent, and that it expected profit this year to tumble 27 percent.

It would be the carmaker's first decline in annual earnings in seven years.

"Investors were spooked," said Tsuyoshi Segawa, an equity strategist at Shinko Securities Co. in Tokyo.

Toyota dropped 3.3 percent, and other Japanese automakers also got hit. Nissan Motor Co. fell 1.6 percent and Honda Motor Co. lost 3.9 percent.

Sony Corp. was also down, dropping 3.1 percent.

Internet and mobile phone provider Softbank Corp. fell 2.7 percent, even though it said Thursday that its net profit more than doubled in the fiscal fourth quarter.

In Hong Kong, investors dumped stocks in the real estate sector, spooked by losses in Chinese markets.

"Hong Kong shares are in lockstep with Chinese shares," said Francis Lun, general manager of Fulbright Securities.