Japan market summary for Wednesday (Nov. 7)
Nikkei 225 Stock Average: -152.95 (-0.9%) to 16,096.68, extends loss to a fourth session
Nikkei 225 futures Osaka: -140 (-0.9%) to 16,130, Singapore (SGX) -115 (-0.7%) to 16,145, Chicago (CME) *11/6 +180 (+1.1%) to 16,385
TOPIX: -17.90 (-1.1%) to 1,556.69; Advancers 226 x decliners 1,420 (unch. 76), New highs 8 x new lows 129; 9/33 sectors posted gains
Nikkei Jasdaq: -12.14 (-0.7%) to 1,817.25
Yen: strengthened 0.7% against the US$ to the 113.80 level late in Tokyo; weakened 0.2% against the euro to the 166.80 level — Note, the vice chairman of China’s National People’s Congress said the country plans to diversify its reserves in response to a falling U.S. currency.

Notes: The Nikkei has lost more then 4.5% over the past four trading sessions. Instead of retesting 17,000, the Nikkei is now flirting with falling back to the 15,000 level.

Unabated worries about the U.S. subprime mess and how it might affect Japan overshadow generally favorable fiscal Q2 earnings reports.

With the comments out of China regarding its plans to diversify its reserves, there’s now a higher likelihood of the yen strengthening against the US$ even without the Bank of Japan hiking rates — the U.S. subprime mess also favors yen strength. Also, the Fed’s recent cuts have narrowed the rate spread.

Keep in mind however, the yen is still very weak against the euro, a currency region where Japan does a sizable amount of business. The yen’s movement could be mostly offsetting if it strengthens further against the US$ but does the opposite against the euro.

MOTHERS and HERCULES faced more selling, losing 4.4% and 2.8%, respectively.

Toyota released earnings after the market close, beating expectations and raising full-year guidance (see Bloomberg’s coverage).