RTTNews - The stock market in Japan ended in negative territory on Wednesday as traders turned jittery about the valuation of stocks in relation to earnings. Continued slump in Chinese markets also impacted sentiment amid volatile trading.

The benchmark Nikkei 225 Index ended at 10,204. representing a loss of 80.96 points, or 0.79%, while the broader Topix index of all first section stocks fell 6.41 points, or 0.7%, to 943.

On the economic front, the Ministry of Economy, Trade and Industry revealed that the all industry activity index dropped 8.2% year-on-year in June, slower than a 10.2% fall in the preceding month. On a monthly basis, the index rose a seasonally adjusted 0.1% in June compared to a 0.7% rise in the preceding month. Economists expected an increase of 0.3%.

Light sweet crude oil price for September delivery ended at $69.21 a barrel in electronic trading, up $0.02 from its previous close $69.19 a barrel in New York on Tuesday.

Sanyo Electric, maker of rechargeable batteries, surged up 10.27% following reports in the press that Toyota Motor will purchase batteries from Sanyo Electric for its hybrid vehicles from 2011.

Automotive stocks also advanced on buying interest at lower levels. Honda Motor added 0.33%, Toyota Motor Corp edged up 0.25% and Nissan Motor advanced 0.71%.

Trading companies ended in negative territory. Sumitomo Corp. declined 1.67%, Mitsui & Co. fell 1.22%, Toyota Tsusho lost 0.82% and Itochu Corp. shed 1.26%.

Shipping stocks ended weaker. Mitsui OSK Lines fell 2.24%, Nippon Yusen lost 1.49% and Kawasaki Kisem declined 2.34%.

Banking stocks also ended in negative territory on concerns about recovery. Mitsubishi UFJ Financial Corp lost 1.52%, Mizuho Financial slipped 0.89%, Resona Holdings lost 2.05% and Sumitomo Mitsui Financial shed 1.50%.

In the U.S., stocks ended in the positive territory partly offsetting the steep losses posted in the previous session amid some encouraging earnings reports from Home Depot (HD), Saks (SKS) and Target (TGT) all exceeding Wall Street estimates on the bottom line, although their revenues fell short of estimates. Traders largely shrugged off mixed economic data related to housing starts and producer price index.

The Dow closed up by 82.07 points or 0.9% at 9,217, the Nasdaq advanced by 25.08 points or 1.3% to 1,956 and the S&P 500 rose by 9.94 points or 1% to 990.

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