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Japanese Market Pares Gains

The Japanese stock market is paring gains on Wednesday after opening higher on upbeat core machine orders data, as a stronger yen weighed on exporters' shares.

The benchmark Nikkei 225 Index is adding 22.43 points or 0.10 percent to 23,491.82, after rising to a high of 23,589.38 in early trades. Japanese shares fell notably on Tuesday to hit a three-week low.

The major exporters are mixed on a stronger yen. Mitsubishi Electric is advancing more than 1 percent and Canon is adding 0.7 percent, while Panasonic is losing almost 1 percent and Sony is down 0.2 percent.

Among auto makers, Toyota is declining 0.5 percent and Honda is edging down 0.1 percent.

In the banking sector, Sumitomo Mitsui Financial is adding 0.7 percent and Mitsubishi UFJ Financial is rising almost 1 percent.

In the oil space, Japan Petroleum is gaining more than 3 percent and Inpex is advancing more than 2 percent after crude oil prices rebounded overnight.

Among the other major gainers, Tokai Carbon is gaining almost 4 percent, while Toho Co. and Nippon Suisan Kaisha are rising more than 3 percent each.

On the flip side, J Front is losing 4 percent, Asahi Kasei is declining more than 3 percent and SoftBank is lower by almost 3 percent.

In economic news, the Cabinet Office said that the total value of core machine orders in Japan spiked a seasonally adjusted 6.8 percent on month in August, worth 981.5 billion yen. That beat expectations for a decline of 3.9 percent following the 11.0 percent spike in July.

Japan will also see preliminary September figures for machine tool orders today.

In the currency market, the U.S. dollar is trading in the 113 yen-range on Wednesday.

On Wall Street, stocks closed mixed on Tuesday for the second straight day as traders kept an eye on treasuries amid renewed concerns about the outlook for interest rates. With the bond markets re-opening following the Columbus Day holiday on Monday, treasury yields turned lower over the course of the session after initial moving higher.

While the tech-heavy Nasdaq inched up 2.07 points or less than a tenth of a percent to 7,738.02, the Dow dipped 56.21 points or 0.2 percent to 26,430.57 and the S&P 500 edged down 4.09 points or 0.1 percent to 2,880.34.

The major European markets closed higher on Tuesday. While the U.K.'s FTSE 100 Index inched up by 0.1 percent, the German DAX Index and the French CAC 40 Index rose by 0.3 percent and 0.4 percent, respectively.

Crude oil prices rose on Tuesday as more evidence emerged that crude exports from Iran, OPEC's third-largest producer, are declining ahead of the U.S. sanctions against the country that kicks in from November 4. WTI crude for November delivery climbed $0.67 or 0.9 percent to $74.96 a barrel on the New York Mercantile Exchange.

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