* Nikkei sinks over 3 pct at one point; exporters hit hard
* Market worried debt crisis may hurt financial system
* Sony outperforms market after "Google TV" news
By Aiko Hayashi
TOKYO, May 21 (Reuters) - Japan's Nikkei average slid more
than 3 percent and hit a five-month low on Friday, with exporters
hurt after the yen strengthened against the euro on worries about
disunity among euro zone leaders on how to address the region's
debt crisis.
Sony Corp <6758.T> fell but outperformed the market after the
Japanese electronics maker said it was teaming up with Google Inc
<GOOG.O> on Web television. [] []
"Deepening worries that the debt crisis might hamper the
global financial system are pushing investors to sell Japanese
stocks, which likely poses a bigger risk here than one that might
come from economic risks," said Masaru Hamasaki, a senior
strategist at Toyota Asset Management.
"Investors are shifting toward cash as you can see from such
moves as investors were even selling gold yesterday. There's
uncertainty over the extent of the fallout from the crisis, such
as whether it would end up leading to a halt in financial trades
like after the Lehman shock."
The benchmark Nikkei <> shed 2.5 percent to 9,778.65 by
the midday break, after earlier falling as low as 9,696.63, its
lowest since early December 2009.
The broader Topix <> fell 2.3 percent to 877.39.
The Nikkei's relative strength index (RSI) stood around 28.
Anything from 30 and below is considered oversold.
"What may change change sentiment like this is usually policy
steps such as providing liquidity," said Kazuhiro Takahashi,
general manager at Daiwa Securities Capital Markets.
U.S. stocks sank about 4 percent on Thursday on growing fears
the euro zone's efforts to tackle its sovereign debt crisis will
fall short, jeopardising the global economic recovery.
The euro slipped to its lowest against the yen since November
2001 below 110 yen <EURJPY=R> the previous day. It was around
113.20 yen in Asia trade.
Investors fret about a stronger yen as it curbs exporters'
profits when repatriated.
Chip tester maker Advantest Corp <6857.T> fell 2.7 percent to
2,062 yen and TDK Corp <6762.T> shed 3.9 percent to 5,420 yen.
Honda Motor Co <7267.T> skidded 3.6 percent to 2,792 yen.
Sony fell 0.2 percent to 2,860 yen. Sony and Google, along
with microchip maker Intel Corp <INTC.O>, have said the the TV
sets, dubbed "Google TV" would be ready in time for the Christmas
season.
Toyota Motor Corp <7203.T> slid 2.5 percent to 3,335 yen.
Toyota and electric carmaker Tesla Motors plan to partner on
electric vehicles in California. []
(Editing by Edwina Gibbs)
