Japanese Market Sharply Lower

(RTTNews) - The Japanese stock market is trading sharply lower on Wednesday, reversing the gains in the previous two sessions, following the mixed cues from Wall Street overnight. The Nikkei 225 is falling below the 48,700 level, with weakness across most sectors led by index heavyweights and technology stocks.

The benchmark Nikkei 225 Index is down 639.28 or 1.30 percent at 48,676.78, after hitting a low of 48,637.21 earlier. Japanese stocks ended modestly higher on Tuesday.

Market heavyweight SoftBank Group is tumbling more than 10 percent, while Uniqlo operator Fast Retailing is gaining almost 1 percent. Among automakers, Honda is losing more than 2 percent, while Toyota is gaining almost 3 percent.

In the tech space, Advantest is declining more than 3 percent, Screen Holdings is tumbling more than 5 percent and Tokyo Electron is losing more than 1 percent.

In the banking sector, Sumitomo Mitsui Financial is edging down 0.2 percent, Mitsubishi UFJ Financial is losing more than 1 percent and Mizuho Financial is declining almost 1 percent.

Among the major exporters, Mitsubishi Electric and Sony are declining almost 1 percent each, while Panasonic is losing more than 1 percent. Canon is flat.

Among other major losers, Sumitomo Metal Mining is tumbling more than 6 percent, while Mitsui Kinzoku and Fujikura are declining almost 4 percent each. Lasertec and Furukawa Electric are losing almost 3 percent each.

Conversely, Taiheiyo Cement is surging 5.5 percent and Aeon is gaining more than 4 percent, while Ryohin Keikaku, IHI and Nissan Motor are adding more than 3 percent each. Nomura Research Institute, Taisei, Takashimaya, Terumo, Subaru, Toray Industries, Kawasaki Heavy Industries and Mazda Motor are up almost 3 percent each.

In economic news, Japan posted a merchandise trade deficit of 234.62 billion yen in September, the Ministry of Finance said on Wednesday. That was well shy of expectations for a surplus of 22.0 billion yen following the 242.6 billion yen shortfall in August.

Exports were up 4.2 percent on year at 9.413 trillion yen, missing forecasts for an increase of 4.6 percent following the 0.1 percent decline in the previous month. Imports were up an annual 3.3 percent at 9.648 trillion yen, exceeding expectations for an increase of 0.6 percent following the 5.2 percent contraction a month earlier.

In the currency market, the U.S. dollar is trading in the higher 151 yen-range on Wednesday.

On the Wall Street, stocks turned in a relatively lackluster performance during trading on Tuesday after moving notably higher over the two previous sessions. The Nasdaq and the S&P 500 spent the day bouncing back and forth across the unchanged line, although the narrower Dow showed a more significant increase to reach a new record closing high.

The Dow pulled back well off its best levels of the day but still closed up 218.16 points or 0.5 percent to 46,924.74. The S&P 500 crept up 0.22 points or less than a tenth of a percent to 6,735.35, while the Nasdaq dipped 36.88 points or 0.2 percent to 22,953.67.

Meanwhile, the major European markets moved to the upside on the day. While the French CAC 40 Index climbed by 0.6 percent, the U.K.'s FTSE 100 Index and the German DAX Index both closed up by 0.3 percent.

Crude oil prices advanced on Tuesday as easing U.S.-China trade friction overrode a stronger greenback and excess supply concerns. West Texas Intermediate crude for November delivery was up $0.38 or 0.66 percent at $57.90 per barrel.