Nikkei reported that Toyota Motor Corporation and other blue chips joined a list of 134 stocks that dropped to YTD lows on August 22nd 2011, the most since August 9th 2011.

With investors alarmed by the prospect of a chronically strong yen and slowing economic activity overseas, the combined market capitalization of the 10 listed automakers slipped below JPY 20 trillion for the first time in about two and a half years.

More than JPY 12 trillion has been wiped from the value of the Tokyo Stock Exchange's first section in the past four sessions. On August 22nd 2011, 15 of the 36 Nikkei sector indexes hit lows for the year, with notable declines in autos, electrical machinery and other foreign-demand driven industries. The automotive sector's index is down more than 20% from July 22nd 2011, when the Nikkei Stock Average reached its most recent high.

The auto industry faces a particularly strong threat to a rapid earnings recovery next fiscal year. The combined market cap of the 10 listed automakers dropped 3% to around JPY 19.6 trillion, falling below JPY 20 trillion for the first time since March 2009. Not only is the yen soaring at a historically high level, but the foreign demand that has sustained automakers' earnings since the financial crisis is also showing worrying signs of decline.

Besides Toyota, the five automakers plumbing YTD lows included Honda Motor Co and Nissan Motor Co. Nissan fell 4% despite relatively solid performance since the March 11th 2011 earthquake disaster, from which it emerged largely unscathed.

(Sourced from Nikkei)