TOKYO (dpa-AFX) - The Japanese stock market is declining on Wednesday, extending losses from the previous session despite the overnight rebound on Wall Street with investors remaining cautious due to the U.S.-China trade tensions even as China's central bank took steps to stabilize the yuan.
The benchmark Nikkei 225 Index is losing 106.19 points or 0.52 percent to 20,479.12, after touching a low of 20,438.80 in early trades. Japanese stocks closed modestly lower on Tuesday, paring losses after hitting a seven-month low earlier in the session.
The major exporters are mostly higher despite a stronger yen. Sony is advancing almost 2 percent, while Panasonic and Mitsubishi Electric are adding more than 1 percent each. Canon is down 0.3 percent.
In the tech space, Advantest is losing almost 5 percent and Tokyo Electron is declining almost 1 percent.
Market heavyweight SoftBank is down 0.2 percent ahead of the release of its earnings results later today, while Fast Retailing is declining more than 1 percent. In the auto sector, Toyota Motor is up 0.2 percent, while Honda Motor is lower by more than 1 percent.
Among oil stocks, Inpex is adding 0.2 percent, while Japan Petroleum is losing more than 1 percent after crude oil prices fell overnight.
Among the other major gainers, Yokogawa Electric is gaining almost 6 percent, Chiba Bank is rising more than 4 percent and Showa Denko is higher by almost 3 percent.
On the flip side, Sumco Corp. is losing more than 9 percent and Takara Holdings is lower by more than 7 percent.
Shares of Kirin Holdings, which reported a net loss for the first half of the year and also lowered its full-year profit outlook, are losing more than 5 percent. Japan Steel Works is also lower by more than 5 percent.
In the currency market, the U.S. dollar is trading in the lower 106 yen-range on Wednesday.
On Wall Street, stocks showed a significant rebound on Tuesday after a sell-off in the previous session, partly due to bargain hunting, with traders picking up stocks at reduced levels. News the People's Bank of China set the midpoint for the Chinese currency at a stronger than expected level also helped ease investor jitters.
The Dow jumped 311.78 points or 1.2 percent to 26,029.52, the Nasdaq soared 107.23 points or 1.4 percent to 7,833.27 and the S&P 500 surged up 37.03 points or 1.3 percent to 2,881.77.
The major European markets also moved to the downside on Tuesday. While the French CAC 40 Index edged down by 0.1 percent, the U.K.'s FTSE 100 Index and the German DAX Index fell by 0.7 percent and 0.8 percent, respectively.
Crude oil prices tumbled on Tuesday amid lingering fears about a likely drop in energy demand due to the ongoing U.S.-China trade war's adverse impact on global economic growth. WTI crude for September ended lower by $1.06 or 1.9 percent at $53.63 a barrel.
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