Japanese, Australian stocks open weaker

TOKYO, Japan -- Stocks in Japan and Australia opened lower on Wednesday as caution prevailed after the U.S. rate cut.

VIDEO CNN's Andrew Stevens with Asian stock market update Play video (QuickTime, Real or Windows Media)

In Australia, the benchmark S&P/ASX200 was down 9.7 points at 3380.5 after an hour's trading.

In Tokyo, the Nikkei 225 average was down 67.09, or 0.5 percent, at 13,986.94 after about an hour's trading, while the capital-weighted TOPIX index fell 6.01 points, or 0.44 percent, to 1,378.84.

Japanese market sentiment was little affected by Tuesday's widely anticipated rate cut by the U.S. Federal Reserve, which cut its key federal funds rate by 50 basis points to 4.0 percent.

Of more interest to Japanese investors was a profit warning by electronics parts maker Murata Manufacturing Co Ltd and anticipated earnings results from corporate giants such as Kyocera.

Murata rattles investors with profit warning

Murata rattled investors with its announcement on Tuesday that it saw group net profit totalling 57 billion yen ($463 million) for the year to next March, down 45.7 percent from a year earlier, because of the recent info-tech slump.

Shares in Murata were ask-only at 9,730 yen, compared with a Tuesday close of 11,130 yen, while rival parts maker Kyocera, which is set to announce its earnings figures later Wednesday, fell 6.73 percent to 11,090 yen.

Baby products makers, which surged on Tuesday on news that Japanese Crown Princess Masako is pregnant, were hit with profit-taking.

Baby care goods maker Pigeon Corp, which soared 19.03 percent on Tuesday, lost 5.68 percent to 1,180 yen while Kimuratan Co Ltd , an infant wear maker, lost 13.58 percent to 70 yen, surrendering part of the previous day's 24.62 percent gain.

Reuters contributed to this report.

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