ASIA MARKETS: Japan Auto Stocks Mixed After U.S. Sales Tumble

By V. Phani Kumar

Shares of Japanese car companies were mixed Wednesday as investors considered their U.S. sales in February, which despite a drop of more than 35% from a year ago, were better than the slump experienced by the Big Three automakers.

In volatile afternoon trading in Tokyo, shares of Toyota Motor Corp. fell 2.5%, Honda Motor Co. (HMC) lost 3.9% and Nissan Motor Co. (NSANY) added 1.7%, as they continued to gain market share in the U.S., although the downhill trend in sales persisted.

The Nikkei 225 Average added 1.3%, rebounding from intraday lows, after dropping for three straight sessions.

Elsewhere in the region, Australia's S&P/ASX 200 lost 1.6%, South Korea's Kospi climbed 2.7%. China's Shanghai Composite jumped 3.2%, Hong Kong's Hang Seng Index rose 0.7% and Taiwan's Taiex advanced 2.5%.

The decline in the shares came after Toyota's monthly sales in the U.S. dropped 40% year-on-year to 109,583 vehicles, Honda's slid 38% to 71,575 units and Nissan's fell 37% to 54,249 cars and trucks. In comparison, General Motors' (GM) sales plunged 53%, Ford's (F) dropped 48% and Chrysler's by 44%.

In Seoul trading, shares of Hyundai Motor Co. (HYMTF) added 0.7% as the South Korean auto major continued to outperform both the U.S. and Japanese car companies. Hyundai's U.S. sales slipped just 1.5% to 30,621 vehicles in February, helped by higher sales of the Elantra sedan.