(RTTNews) - The Japanese stock market is exhibiting weakness on Wednesday with the mixed close on Wall Street overnight pushing investors on to a defensive mood in morning trades. A stronger yen and the decline in U.S. consumer confidence are contributing significantly to the weakness.

The benchmark Nikkei 225 index, which opened around 40 points down at 10,182 and drifted down to 10,131, is currently trading at 10,140, down 72.5 points, or 0.7%, from its previous close.

Automobile stock Honda Motor is trading nearly 4% 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 firm, 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.

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.

Among other stock markets in the Asia-Pacific region, Australia, Korea and Taiwan are trading weak. Shanghai and New Zealand are up with modest gains, while Singapore is trading flat. On Tuesday, most of the markets in the region had ended notably lower.

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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