* Markets jittery ahead of U.S. payrolls
* Nikkei should be supported above 14,000 - analysts
* Nikon tumbles after cutting digital camera sales forecast
* Online shares included in new index down on profit-taking
By Ayai Tomisawa
TOKYO, Nov 8 Japanese stocks tumbled to
one-month lows on Friday morning after a sharp drop on Wall
Street dented risk appetite, keeping investors on the defensive
ahead of a crucial U.S. jobs report later in the day.
The benchmark Nikkei dropped 0.9 percent to
14,096.96 in mid-morning trade, after falling to 14,026.17
earlier, the lowest since Oct 9. The Nikkei remains below
14,193.99, a 50 percent retracement of its May high to its June
On Thursday, Wall Street suffered its biggest fall in more
than two months as weak earnings from the likes of Whole Foods
and Qualcomm dimmed the mood.
"The Japanese market took a hit from weak U.S. markets, but
if the Nikkei falls below 14,000, investors may start buying on
the dips," said Nobuhiko Kuramochi, a strategist at Mizuho
"A level below 14,000 does not do justice to companies'
fundamentals considering their results," he said, adding that on
average, companies are expected to post a 38.7 percent rise in
their pretax profits for the year ending March.
Of the 127 Nikkei companies that have so far reported
July-September results, two-third of them either beat or met
analysts' expectations, according to Thomson Reuters StarMine.
That compared with 58 percent in the previous quarter.
On Friday, bellwether exporters were weaker as some
investors trimmed their positions ahead of the U.S. jobs data.
A strong jobs report would give the U.S. Federal Reserve a
reason to taper its monthly purchases of $85 billion in assets
sooner rather than later, particularly after a much
better-than-expected U.S. gross domestic product report on
Speculation over the timeline for trimming the Fed's
stimulus, a major driver of risk assets in recent years, has
buffeted global markets since May.
"Eyes are on the jobs data, and as the data impacts the
direction of the Fed's tapering, performances in emerging
markets are also in focus," said Makoto Kikuchi, the chief
executive of Myojo Asset Management.
Sony Corp fell 2.4 percent and Toyota Motor Corp
shed 0.8 percent.
Nikon Corp stumbled 6.3 percent to a one-month low
after the company cut sales forecast of its digital camera
The Topix dropped 0.7 percent to 1,176.56.
Profit-taking hit online companies such as GungHo Online
Entertainment Inc and CyberAgent Inc, which
attracted buying on Thursday after they were included in a new
index comprised of companies with high return on equity and
strong corporate governance.
GungHo slipped 0.9 percent and CyberAgent skidded 2.6