Tokyo mixed on bank merger talk
(CNN) -- Tokyo stocks are mixed at midday Wednesday after banks rose on reports two big groups would enter merger talks.
Most other Asian markets are in the red, with Australia down sharply after a profit warning from leading bank NAB.
The dollar is higher against the Japanese yen.
The Nikkei 225 stock average has given up early gains to be 0.4 percent lower at 11,568,22 at the end of the morning session. On Tuesday the benchmark rose 0.23 percent.
The broader Topix index of all first section issues on the Tokyo Stock Exchange is up 0.24 percent to 1169,26. The Topix gained 0.41 percent on Tuesday.
Banking shares are up after reports that UFJ Holdings planned to ask Mitsubishi Tokyo Financial Group to start merger negotiations. (Full story)
Shares in those two banks are suspended, but rivals Mizuho Holdings and Sumitomo Mitsui Financial Group are both about 4 percent ahead.
MTFG is Japan's second-largest bank and one of its healthiest. UFJ, which reported a $3.7 billion loss last financial year, is Japan's fourth-largest bank. A merger would create the world's biggest banking group with assets of $1.7 trillion.
A UFJ spokesman said nothing had been decided about the merger talks.
In New York Tuesday, Wall Street closed narrowly mixed. The Dow Jones industrial average rose 0.1 percent to 10,247.59 and the Nasdaq fell 0.27 percent to 1931.66. (Full story)
The dollar is quoted at 108.59 yen Wednesday, up 0.07 yen from late Tuesday but below the 108.85 yen it bought in New York later that day.
Elsewhere in Asia, the Kospi in South Korea is down 0.7 percent to 745.73.
Leading exporter Hyundai Motor is up 1.15 percent to 43,900 won. But the market's biggest stock, Samsung Electronics, is down 1.15 percent to 428,500 won.
In Australia, the S&P/ASX200 is down more than 1 percent to 3521.4.
Leading bank NAB has tumbled 5.8 percent to A$29.17 after warning its second half earnings will be sharply lower.
Resources leader BHP Billiton is down about 1 percent and media giant News Corp is off 0.66 percent to A$12.03.
Taiwan's Taiex is off 0.53 percent to 5655.70 and New Zealand's Top 50 is down 0.14 percent at 2677.92.
Singapore's Straits Times index is down 0.43 percent to 1870.14.
The Singapore government released figures Monday morning showing the island state's economy grew at an annualized rate above 9 percent in the second quarter. (Full story)
