Asian Stocks Fall; Nikkei Ends Down 1.35%

NEW YORK (TheStreet) -- Asian markets were lower Wednesday, with Japan's Nikkei index ending down by 1.35%, in response to weak U.S. trading and earnings from companies that fell short of analysts' expectations.

The Hang Seng index in Hong Kong was off 1.7%.

S&P 500 futures continued to decline even after the close of the cash session, and right now the futures index is just trading above a support trend-line that has been holding the market since mid-July.

Technology companies were the biggest drag on most Asian stocks, shedding almost 3% in the Hang Seng index and posting substantial declines in the other major Asian markets. Negative momentum also came from the financials and from the oil and energy sectors, shedding substantial points during the intraday session. Financials dropped after National Australia Bank disappointed the market with its third-quarter report.

Japan's Canon(CAJ) said earnings declined in the third quarter, its seventh straight quarterly drop.

The carmakers sector was among the only one that advanced during the session Wednesday, helped by Honda's(HMC) quarterly results. Honda advanced almost 4%, being among the best gainers in Japan.

Retail sales in Japan fell 1.4% in September, while analysts were expecting a 1.5% decline. It's the 13th month in a row that Japan's retail sales have fallen. This shows that consumers can't be depended on to lead the recovery and raise the country out of the recession.

Crude oil was recently trading at $79.33 a barrel, down by 22 cents.

Gold bullion for December delivery was recently trading higher by $4.30 to $1,039.70 an ounce.