After the bell the retailer reported a 4

jobsdata and an Intel Corp (INTC.O) revenue warning fanned fears therecession was deepening, hitting chip stocks and other exporters. The benchmark erased most of the gains it has booked so farthis year. It had climbed nearly 9 percent in the past seventrading sessions including two half-days of trading before andafter the New Year holiday. Oil and gas field developer Inpex (1605.T) and otherresource-linked shares sank after oil fell 12 percent to log itslargest percentage fall in 7 years. economies," said Mitsushige Akino, chief fund manager atIchiyoshi Investment Management. "But it's too early to say this is the start of a downwardtrend as market optimism over economic stimulus steps by the newU.S.

administration is still running high." The benchmark Nikkei .N225 shed 362.82 points to 8,876.42,snapping its longest winning streak since the one that ended inApril 2006 The broader Topixlost 3.1 percent to 860.89. Recession fears were heightened after ADP, a privateemployment service, said U.S. private employers shed 693,000 jobsin December, up from the revised 476,000 jobs lost in Novemberand far more than economists estimated ID:nN07470568. Investors will closely watch non-farm payrolls andunemployment data due on Friday.

CHIP EQUIPMENT MAKERS TUMBLE Shares of Tokyo Electron Ltd (8035.T) and other chipequipment makers fell sharply after semiconductor maker Intel onWednesday issued its second revenue warning on the fourth quarterdue to weak demand. ID:nN07475140 The warning sparked concern that orders for equipment fromIntel, the world's biggest maker of the central processing unitsat the heart of every personal computer, and other chip makerswill slow further. "Investors have factored in poor corporate earnings, butspooked by Intel's warning, they now want to see if thoseearnings will be worse than their current expectations," saidYumi Nishimura, a manager at Daiwa Securities SMBC. Tokyo Electron tumbled 13 percent to 3,350 yen, AdvantestCorp (6857.T) dropped 12 percent to 1,439 yen, Disco Corp(6146.T) lost 11.8 percent to 2,215 yen and Nikon Corp (7731.T)shed 7.6 percent to 1,165 yen. Kyocera Corp (6971.T), an electronic parts maker with a chipcomponent division, was also hurt by a brokerage downgrade on aweaker earnings outlook. It slid 6.7 percent to 6,740 yen afterJP Morgan cut its rating to "neutral" from "overweight" andlowered ts target price to 6,500 yen from 8,500 yen Shares of Inpex sank 9 percent to 679,000 yen. Trading houses, which are major dealers in energy and havestakes in oil and gas products, also fell.

Mitsubishi Corp(8058.T), Japan's largest trader, slid 4.5 percent to 1,345 yen,while Mitsui & Co (8031.T) shed 5.7 percent to 992 yen. 2 retailer said it may post its first annual net lossin seven years, hit by flagging sales, a writedown at U.S unitTalbots (TLB.N) and accounting changes. ID:nT366933 Top retailer and convenience store operator Seven & IHoldings (3382.T) gained 3.6 percent to 2,750 yen. After the bell, the retailer reported a 4.4 percent rise inoperating profit in the nine months ended in November and keptits forecast for the year, as its convenience stores attractedthrifty consumers amid an economic slump. ID:nT24019 Mitsubishi Motors advanced 3.6 percent to 144 yen,outperforming a 2.7 percent drop in the transport equipmentsubindex .ITEQP.T.