Nikkei slips over 3 pct, banks and exporters hit

TOKYO, April 21 (Reuters) - Japan's Nikkei average tumbled 3.1 percent on Tuesday after poor earnings results from Bank of America revived worries about the U.S. financial system and economy, with Mizuho Financial Group (8411.T) and other banks hit as a result. Tech shares slid in the wake of worse-than-expected results from IBM (IBM.N), while a stronger yen undermined exporters such as Honda Motor Co (7267.T).

Toyota Motor Corp (7203.T) slipped on that and a media report that it will likely reduce production by more than 12 percent in the financial year to March 2010. [ID:nT30926]

The benchmark Nikkei .N225 shed 3.1 percent to 8,647.38, while the broader Topix .TOPX fell 2.8 percent to 824.28.

Bank of America (BAC.N) said on Monday its credit quality deteriorated markedly, sending its shares plunging 24.3 percent and raising questions about the sustainability of recent better-than-expected results from the banking sector. [ID:nN20380236]

(Reporting by Elaine Lies; Editing by Michael Watson)