Tokyo - Stocks plunged more than 4 per cent in Tokyo Tuesday as the market sentiment was dampened by speculation that Sony Corp would incur the first operating loss in 14 years for the fiscal year 2008.

The Nikkei 225 Stock Average tumbled 422.89 points, or 4.8 per cent, to close at 8,413.91.

The broader Topix index of all First Section issues also fell 40.9 points, or 4.78 per cent, to 814.12.

The Tokyo players dumped mainly export-oriented issues on the yen's advance against the US dollar, while Japanese electronics giant Sony was estimated to report an operating loss of about 100 billion yen (1.11 billion dollars).

On the currency markets at midday (0300 GMT), the dollar rose to 89.41-46 yen from Monday's 5 pm quote of 89.18-28 yen in New York. The Tokyo market was closed Monday for a national holiday.

The euro was quoted at 1.3323-28 dollars, down from late Monday's quote of 1.3355-65 dollars in New York, and at 119.16-21 yen, almost unchanged from 119.12-22 yen. (dpa)