At 03:37, Omori ordered a retreat while believing that his force had sunk an American heavy cruiser. The American formation actually consisted of four light cruisers and eight destroyers, so that identification was mistaken. He also feared being caught in daylight by American carrier aircraft. His decision to withdraw combined an inflated estimate of the damage inflicted with concern about the danger of remaining after dawn.
Notable Point · 1:05:16-1:05:52
Omori withdrew with an inflated estimate of Japanese success
A mistaken belief that a heavy cruiser had been sunk and the threat of daylight air attack shaped Omori's decision to retreat.