Tokyo  - Stocks declined more than 2 per cent in Tokyo Friday morning after Sony Corp announced a projected record operating loss for fiscal 2008.

The benchmark Nikkei 225 Stock Average plunged 228.4 points, or 2.84 per cent, to 7,823.34, and the broader Topix index of all first section issues was also down 16.29 points, or 2.05 per cent, at 779.62.

Sony said it expected to suffer an operating loss of 260 billion yen (2.9 billion dollars) and a net loss of 150 billion yen because of the rise in the yen's value and the global economic downturn, which hurt the company's sales of televisions.

On currency markets at 9 am (0000 GMT), the dollar was quoted at 89.10-15 yen, down from Thursday's 5 pm quote of 89.32-35 yen.

The euro traded at 1.3002-07 dollars, almost unchanged from late Thursday's quote of 1.3002-05 dollars, and at 115.85-90 yen, down from 116.16-20 yen. (dpa)