CORRECTED - WRAPUP 1-MUFG, Mizuho slash profit forecasts on market turmoil
(Corrects paragraph 9 to show bad loan costs for six months, not nine)
* Top Japanese banks cut outlooks on bad loans, stock losses
* MUFG cuts full-year profit forecast 66 pct, Mizuho 55 pct
* Central bank says Japan economy in severe condition
By David Dolan
TOKYO, Oct 31 (Reuters) - Japan's two-largest banks, Mitsubishi UFJ Financial Group (8306.T: Cotización) and Mizuho Financial Group (8411.T: Cotización), cut their earnings outlooks by more than half on on Friday, hit by growing bad-loan costs and a plunging local stock market.
Once thought to be relatively insulated from the global credit crisis, Japanese lenders are now facing a sharp downturn in profits, hurt by a brittle domestic economy and overexposure to a stock market that has lost near half its value this year.