Japanese Market Modestly Lower

(RTTNews) - The Japanese stock market is trading modestly lower on Wednesday, extending the losses in the previous three sessions, following the broadly negative cues from Wall Street overnight. The Nikkei 225 is falling to near the 63,350 level, with weakness index heavyweights partially offset by gains in automakers and financial stocks.

The benchmark Nikkei 225 Index is down 126.95 or 0.20 percent at 63,357.15, after hitting a low of 63,268.72 earlier. Japanese stocks ended slightly lower on Tuesday.

Market heavyweight SoftBank Group is tumbling more than 4 percent and Uniqlo operator Fast Retailing is edging down 0.1 percent. Among automakers, Honda is gaining more than 1 percent and Toyota is adding almost 1 percent.

In the tech space, Advantest is edging down 0.4 percent, while Tokyo Electron is gaining almost 1 percent and Screen Holdings is adding more than 1 percent.

In the banking sector, Sumitomo Mitsui Financial is gaining more than 1 percent, while Mizuho Financial and Mitsubishi UFJ Financial are adding almost 1 percent each.

Among the major exporters, Mitsubishi Electric is gaining more than 1 percent, Panasonic is advancing almost 4 percent and Canon is adding almost 1 percent, while Sony is edging down 0.3 percent.

Among other major losers, Otsuka Holdings is tumbling almost 5 percent, while Sumitomo Pharma and Mercari are declining more than 4 percent each. Kioxia Holdings is losing more than 3 percent and Ididen is down almost 3 percent.

Conversely, Idemitsu Kosan and ENEOS Holdings are surging more than 5 percent each, while Mitsubishi Chemical Group is advancing almost 4 percent. Tokyo Electric Power, Mitsui Chemicals, Kubota, Mitsui & Co., Inpex, Hitachi and Amada are gaining more than 3 percent each, while Taisei, Kajima, Shimizu and Sumitomo Chemical are adding almost 3 percent each.

In economic news, the total value of core machinery orders in Japan was down a seasonally adjusted 3.7 percent on month in July, the Cabinet Office said on Wednesday - coming in at 1.016 trillion yen. That missed expectations for a decline of 1.2 percent following the 9.7 percent increase in June.

On a yearly basis, orders climbed 11.2 percent - again shy of expectations for a gain of 15.3 percent and down from 16.9 percent in the previous month. For the third quarter of 2026, orders are forecast to rise 4.9 percent on quarter and 19.9 percent on year.

The total value of machinery orders received by 280 manufacturers operating in Japan decreased 5.5 percent on month but surged 36.8 percent on year to 4.195 trillion yen.

Meanwhile, Japan posted a merchandise trade deficit of 1.105 trillion yen in August, the Ministry of Finance said on Wednesday. That missed forecasts for a deficit of 1.052 trillion yen following the 634.5 billion yen shortfall in July.

Exports were up 19.3 percent on year to 10.048 trillion yen, exceeding expectations for an increase of 18.2 percent following the 23.2 percent gain in the previous month. Imports jumped an annual 28.0 percent to 11.153 trillion versus forecasts for a gain of 26.3 percent and up from 27.8 percent a month earlier.

In the currency market, the U.S. dollar is trading in the lower 155 yen-range on Wednesday.

On Wall Street, stocks moved mostly lower during trading on Tuesday, adding to the losses posted during Monday's session. The major averages all moved to the downside on the day, with the S&P 500 dropping to its lowest closing level in over a month.

The major averages ended the day off their lows of the session but still firmly in negative territory. The Dow declined 328.09 points or 0.6 percent to 52,093.11, the Nasdaq slid 204.84 points or 0.8 percent to 25,981.57 and the S&P 500 fell 34.25 points or 0.5 percent to 7,585.73. The major European markets also moved to the downside on the day. While the German DAX Index dipped by 0.2 percent, French CAC 40 Index and the U.K.'s FTSE 100 Index fell by 0.3 percent and 0.4 percent, respectively.

Crude oil prices surged on Tuesday as supply concerns mount after Saudi Arabia shut its East-West pipeline. West Texas Intermediate crude for October delivery was up $4.37 or 4.31 percent at $105.76 per barrel.