(RTTNews) - Asian markets are trading lower on Wednesday with the negative close on Wall Street overnight on weak economic reports hurting sentiment to an extent. Profit taking after recent gains is also contributing to the weakness in the region. Despite bouncing back after an early setback, some of the markets are seen struggling to hold at higher levels due to lack of support.

The Australian market is trading weak with investors pressing sales in materials and bank stocks. Energy stocks are trading firm on higher crude oil prices.

The benchmark S&P/ASX 200 index, which drifted down to 4,819 in early trades, is currently down 17.22 points, or 0.4%, at 4,828. The broader All Ordinaries index is down 16.8 points, or 0.3%, at 4,836.

BHP Billiton is down 1% despite the company reporting a record iron ore output for the first quarter. The resources group’s iron ore production rose to 30.106 million tonnes in the three months ended September 30, from 29.824 million tonnes during the same period in 2008.

Rio Tinto and Newcrest Mining are trading lower by 0.2% and 0.7%, respectively. Orica is down by 2.2%. Lihir Gold, Fortescue Metals, Bluescope Steel and Incitec Pivot are also trading weak.

Among energy stocks, Woodside Petroleum, Santos and Oil Search are gaining about 1% each, while Origin Energy is up 0.5% over its previous closing price.

In the banking space, Commonwealth Bank of Australia and National Australia Bank are trading lower by 0.9% and 0.5%, respectively, while ANZ Bank and Westpac Banking Corporation are trading flat. Diversified financials stock Macquarie Group is down by over 1%.

Qantas Group is trading a percent down. The company said the global economic outlook remains uncertain but it is seeing some encouraging signs and has seen no further deterioration in its business. Chairman Leigh Clifford told the national carrier’s shareholders at its annual general meeting Qantas is well positioned to benefit when trading conditions improve.

On the economic front, the annualized growth rate of the Westpac-Melbourne Institute leading index of economic activity, which indicates the likely pace of activity three to nine months into the future, was 1.7% in August, the first positive reading for the index since September 2008. The index was minus 1.0 points in July and minus 4.2 points in June.

According to a release from the Australian Bureau of Statistics, Australian new motor vehicle sales rose by a seasonally adjusted 2.9% to 77,744 units in September, from 75,530 units in August.

In the currency market, the Australian dollar opened lower, with investors pulling away from the risk-sensitive unit on the back of some weak economic leads from U.S. In early trades, the Aussie was quoting at US$0.9224-US$0.9225, down from Tuesday’s close of US$0.9280-US$0.9283. The Australian dollar is currently trading at 0.9225 to the U.S. dollar.

In Tokyo, the benchmark Nikkei 225 index did rebound and very nearly made it to positive territory after a weak start, but faltered subsequently with stocks finding strong resistance at higher levels.

The index, which fell to 10,292 in early trades but recovered to 10,338, was down 31.6 points, or 0.31%, at 10,305 at the end of the morning session.

Food and chemicals stocks traded lower. Pharmaceuticals, real estate and trading houses shares were mostly down in the red. Steel stocks JFE Holdings, Pacific Metals and Kobe Steel, as well as non-ferrous metals exhibited weakness. Machinery, electric machinery and shipbuilding stocks were mostly down in negative territory, while automobile and bank stocks were trading mixed.

Fast Retailing extended its gains and hit a year-to-date high in morning trades on expectations of robust earnings. The stock was up nearly 4% at the end of the morning session.

Shares of heavy machinery maker IHI Corp. moved up nearly 4% on reports the company is likely to report around 15 billion yen in group operating profit for the April-September period, a 44% jump from the same period a year earlier and 3 billion yen more than earlier projections. Group revenue during the period is thought to be in line with earlier expectations at around 580 billion yen, down 5% year over year.

Shares of Softbank Corp. moved up over 3% as investors thronged the counter on expectations of higher sales and profits in the April - September term.

Japan Airlines rallied, gaining ground for the third successive day, on reports that the ailing carrier may receive about 300 billion yen in public funds. The stock was up 5% at 124 yen at the end of the morning session.

In the currency market, the U.S. dollar traded in the upper 90-yen zone early Wednesday morning in Tokyo, little changed from its levels overnight in New York. In early trades, the dollar fetched 90.78-90.84 yen compared with Tuesday close of 90.73-90.83 yen in New York and 90.29-90.32 yen in Tokyo. The yen is currently trading at 90.73 to the U.S. dollar.

After a weak start and a subsequent recovery, the South Korean market has drifted down into the red on fairly heavy selling in technology and shipbuilding stocks.

The benchmark KOSPI index, which rebounded to 1,665 after an early fall, is currently trading at 1,650, down 9.1 points, or 0.55%, from its previous close.

Tech heavyweight Samsung Electronics is trading lower by about 2%. Other top stocks in the tech space, Hynix Semiconductor, LG Display LCD and LG Electronics are also trading weak, losing 0.8%-2.5% from their previous closing prices.

In the shipping space, Samsung Heavy Industries, STX Pan Ocean and Daewoo Shipbuilding are trading lower by 1.2% - 2.5%, while Hyundai Heavy Industries is down with a modest loss.

Among bank stocks, Korea Exchange Bank, Woori Finance and Shinhan Financial are trading modestly higher, while KB Financial is down with a 0.7% loss. Among automobile stocks, Kia Motor is up by about 1%, Hyundai Motor is trading higher by 2.8% and Ssangyong Motor is gaining nearly 4%.

Energy stocks SK Holdings, S-Oil and KEPCO are trading flat. Steel stocks are exhibiting a mixed trend. Telecom and airlines are exhibiting weakness.

Other markets in the Asia-Pacific region, Shanghai, Hong Kong, Indonesia, New Zealand, Singapore and Taiwan are also currently trading notably lower. Stock markets in the region had closed mostly higher on Tuesday.

On Wall Street, stocks drifted lower on Tuesday with disappointing housing data triggering some selling. The major averages all closed firmly in negative territory after ending the previous session at one-year closing highs.

The Dow closed lower by 50.7 points, or 0.5%, at 10,042, the Nasdaq ended down 12.9 points, or 0.6%, at 2,164 and the S&P 500 drifted down by 6.9 points, or 0.6%, to 1,091.

Major European markets all closed moderately lower on Tuesday, with the U.K.’s FTSE 100 and the German DAX index both falling by 0.7%, while the French CAC 40 index closed 0.5% down.

Crude oil finished lower after failing to hold above the US$80 per barrel mark on Tuesday. Disappointing economic reports led to energy demand worries ahead of Wednesday’s inventory report. Light sweet crude for November fell to US$79.08, down 52 cents on the session. The November contract expired at the end of Tuesday’s session. December oil fell 84 cents to finish at US$79.12 per barrel.

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