TOKYO, JAPAN - The Nikkei average is likely to slide on Monday, hurt by a stronger yen and after Wall Street tumbled on weak consumer spending data and renewed worries about Citigroup's balance sheet.

Analysts also cited CIT Group's bankruptcy filing on Sunday as further negative news for the market. CIT is a US lender to hundreds of thousands of small and medium-sized businesses.

Sony Corp and Panasonic Corp are likely to draw attention after signalling the worst may be over for the world's two largest consumer electronics makers as they raised their full year outlooks, helped by cost cuts.

'The market will likely lose ground across the board after a sell-off in US stocks, though both US and Japanese stocks have already been oversold in the short-term,' said Hiroichi Nishi, general manager of equity marketing at Nikko Cordial Securities.

'The strengthening of the yen is also going to weigh on the market...there are no new Japan-specific reasons to buy Japanese stocks.'

Nikkei futures traded in Chicago finished at 9,740.00 on Friday, down 2.7 per cent from the Osaka close, pointing to a sharply lower start.

The benchmark Nikkei is likely to move between 9,600 and 9,900 on Monday, market players said. It rose 1.5 per cent on Friday to 10,034.74.

The yen rose to two-week highs against the dollar around 89.20 yen in early Asia trade. Investors fret about a stronger yen as it eats into exporters' profits when they are repatriated.

The S&P lost 2.8 per cent on Friday as the fragility of the US economic recovery was highlighted by economic reports that showed US consumers cut spending in September and consumer sentiment turned gloomier this month.

Citigroup shares sank after accounting expert Robert Willens, an independent consultant, said the bank was likely to have a $10 billion fourth-quarter charge on its deferred tax assets.

Japan's corporate earnings season continues this week.

Companies reporting later in the day include Suzuki Motors Corp and Daihatsu Motor Co .