(RTTNews) - Asian markets are mostly trading with notable losses on Wednesday, with participants indulging in some heavy selling following a subdued close on Wall Street overnight on the back of a decline in consumer confidence. With a slew of earnings and economic reports due for release during the course of this week, investors are treading cautiously and are mostly seen keen on taking profits, perhaps fearing some strong corrections in the foreseeable future.

Markets in Australia, Hong Kong, South Korea, Japan, Indonesia and Shanghai are trading sharply lower. Singapore and Taiwan are also trading weak. However, the New Zealand market is trading in positive territory with a notable gain.

In the Australian market, materials and financial stocks are down with notable losses. Technology, industrials and cosumer discretionary stocks are also trading weak.

The benchmark S&P/ASX 200 index is down 52.5 points, or 1.1%, at 4,701, while the broader All Ordinaries index is trading at 4,697, down 57.9 points, or 1.2%, from its previous close.

National Australia Bank Ltd. shares rose marginally in early trades, but have drifted lower and are currently trading nearly 3% down. The bank posted a 42.9% fall in annual profit after bad debt charges dented its bottom line. The bank also said loan arrears were starting to stabilize as economic conditions improve. Net profit was A$2.589 billion for the 12 months ended September 2009, down from A$4.536 billion in the previous year, the Melbourne-based bank said in a statement on Wednesday.

Among other stocks in the banking space, ANZ Bank is down 2.2%, Commonwealth Bank of Australia is trading lower by about 2.8% and Westpac Banking Corporation is down 2.5% from its previous close. Diversified financials stock Macquarie Group is trading lower by 1.6%.

Macquarie Media Group plans to raise A$294 million in new funding to pay down debt, as it prepares to take back its management rights from Macquarie Group Ltd and simplify its corporate structure. The capital raising comprises an underwritten one-for-one renounceable entitlement offer at $1.55 per stapled security. The Macquarie Media Group shares are under a trading halt.

Materials stocks BHP Billiton and Rio Tinto are trading lower by 0.8% and 1.4% respectively. Newcrest Mining is up with a modest gain. Bluescope Steel, Fortescue Metals, Orica and Lihir Gold are exhibiting weakness.

Among energy stocks, Woodside Petroleum is down 2.3%. Origin Energy and Oil Search are trading with modest losses, while Santos is up nearly 1%.

On the economic front, Australia’s headline consumer price index rose 1% in the September quarter, for an annual rate of 1.3%, the Australian Bureau of Statistics said on Wednesday. The trimmed mean CPI rose 0.8% in the September quarter, for an annual growth rate of 3.2%. The weighted median CPI rose 0.8% in the September quarter, with an annual rise of 3.8%.

Speaking at the FINSIA Financial Services Conference, Reserve Bank of Australia assistant governor Malcom Edey said Australia’s banking system has proved more resilient than its overseas counterparts during the global financial crisis but there is a risk that business loans will deteriorate further in the future.

In another news, skilled job vacancies in Australia rose 1.9% in October compared to the previous month, data from the Federal Department of Employment and Workplace Relations showed. The Department of Education, Employment and Workplace Relations (DEEWR) skilled vacancies index in October was 40.2 points, 44 per cent lower than in October 2008.

In the currency market, the Australian dollar opened lower with a decline in U.S. consumer confidence causing its weakness. In early trades, the Aussie was quoting at US$0.9147-US$0.9150, down from Tuesday’s close of US$0.9186-US$0.9191. The Australian dollar is currently trading at 0.9122 to the U.S. dollar.

The Japanese stock market is exhibiting weakness with a stronger yen and the decline in U.S. consumer confidence contributing significantly to the weakness.

The benchmark Nikkei 225 index, which opened around 40 points lower at 10,182 and was down with a loss of 68 points at the end of the morning session, is currently trading at 10,105, down 107.5 points, or 1.06%, from its previous close.

Automobile stock Honda Motor is trading nearly 3% up following an announcement by the company that its group net profit will likely expand 13% on the year to 155 billion yen for the year to March, far better than previously expected. The sharp upgrade is the result of strong sales of four-wheel and two-wheel vehicles in Japan and emerging countries, as well as increased profit due to cuts in administrative costs.

Among other automobile stocks, Toyota Motor, Suzuki Motor and Nissan Motor are trading modestly higher, while Mitsubishi Motors is trading flat.

In the banking space, Sumitomo Mitsui Financial, Resona Holdings, Sumitomo Trust and Banking and Chuo Mitsui Trust Holdings are trading higher, while Chiba Bank and Bank of Yokohama are exhibiting weakness.

Machinery, steel and non-ferrous metals stocks are exhibiting a mixed trend. Food, pharmaceuticals and chemicals stocks are also trading mixed.

Electrical machinery stock Canon is down more than 3% on selling pressure. On Tuesday, the company reported a 55% on-year tumble in its third quarter group net profit as demand for its electronics products has yet to recover from the effects of the global recession.

Canon posted a net profit of 36.73 billion yen for the three months ended Sept. 30, down from the 83.04 billion yen profit earned a year earlier, as revenue tumbled 22% to 774.32 billion yen from 985.99 billion yen.

Shimano Inc. dropped nearly 8% in morning trades after the bicycle parts maker said Tuesday evening it will likely post a group net profit of 11.2 billion yen for the year to December, down compared to the previously forecast 15.6 billion yen.

In the currency market, the U.S. dollar traded in the upper 91 yen zone early Wednesday in Tokyo, slightly down from its late Tuesday quotes in New York. In early trades, the dollar fetched 91.65-91.69 yen against Tuesday’s close of 91.75-91.85 yen in New York and 92.03-92.05 yen in Tokyo. The yen is currently trading at 91.31 to the U.S. dollar.

The South Korean market is trading lower, with technology, shipbuilding and automobile stocks among the prominent losers. With investors turning extremely cautious ahead of some important earnings and economic reports, the market is seen struggling for support.

The benchmark KOSPI index, which opened flat at 1,648.8, is currently down 32.5 points, or 1.97% at 1,617.

Among shipping stocks, Hyundai Heavy Industries is down 4%, Samsung Heavy Industries is trading lower by nearly 5% and Daewoo Shipbuilding is down with a 3.3% loss, while bulk carrier STX Pan Ocean is declining by about 5%.

In the tech space, heavyweight Samsung Electronics is trading 1.7% down and Hynix Semiconductor is down 1.3%, while LG Display LCD and LG Electronics are trading lower by 2.5% and 3.6% respectively.

Automobile stocks Kia Motor, Hyundai Motor and Ssangyong Motor are down 1.5%-3% from Tuesday’s closing prices. Steel stocks Hyundai Steel and POSCO are trading lower by 3.4% and 3% respectively.

Among bank stocks, KB Financial is down with a loss of over 1%. Korea Exchange Bank is up with a small gain, while Woori Finance and Shinhan Financial are trading modestly lower. Oil, telecom and airliners are trading weak.

On Wall Street, stocks moved in a choppy fashion on Tuesday, as weak consumer confidence and positive news on the housing market diverged trader sentiment. The major averages closed on opposite sides of the unchanged line, with the tech-heavy Nasdaq closing notably lower.

While the Dow ended up 14.2 points, or 0.1%, at 9,882.2, the S&P 500 closed lower by 3.5 points, or 0.3%, at 1,063.4 and the Nasdaq ended with a loss of 25.8 points, or 1.2%, at 2,116.

Major European markets turned in a mixed performance on Tuesday. The French CAC 40 index and the German DAX index posted modest losses, while the U.K.’s FTSE 100 Index edged up 0.2%.

Crude oil prices turned higher on Tuesday amid choppy trading as traders awaited the Energy Information Administration’s inventory data. Light sweet crude for December closed at US$79.55, up 87 cents on the session.

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Posted in Categories: Australia, Eurozone, Japan, New Zealand, Releases, Stocks, USA.

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