TOKYO: Tokyo shares softened slightly on Wednesday morning after industrial production figures for November came in weaker than expected.
After opening slightly lower, the Nikkei index at the Tokyo Stock Exchange entered positive territory but ended the morning session flat, edging down 0.05 percent or 4.32 points to 8,436.24.
The Topix index of all first section shares fell 0.20 percent or 1.43 points to 722.82.
Japan's industrial production dropped 2.6 percent in November from the previous month, the first fall in two months, after flooding in Thailand crippled supply chains.
The reading, released by the industry ministry on Wednesday, was bigger than market expectations of a 0.7 percent fall.
But SMBC Nikko Securities general manager of equities Hiroichi Nishi said the market's downside was limited, pointing out that Japanese stocks remain relatively cheap.
"The market lacks direction," Nishi told Dow Jones Newswires.
Wall Street closed mixed overnight as the Sears retail chain announced it would close between 100 and 120 stores in an effort to save costs after a plunge in holiday sales.
The announcement offset a boost from pre-Christmas reports that suggested US consumer spending during the holiday season was up modestly from 2010.
After a strong finish last week, the Dow Jones Industrial Average was flat, losing 2.65 points, or 0.02 percent, to 12,291.35.
The broader S&P 500 was flat, gaining 0.10 points to 1,265.43, while the Nasdaq Composite added 6.56 points (0.25 percent) to 2,625.20.
On forex markets, the dollar stood at 77.82 yen, slightly lower than 77.88 in New York late Tuesday.
The euro was also flat at $1.3069 and 101.70 yen, compared with $1.3070 and 101.77 yen in New York.
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