Japanese stocks close lower after disappointing business outlook

Japanese stocks fell on Thursday, tracking losses incurred by Wall Street overnight, as heavyweights such as Honda Motor and Sumitomo Rubber Industries fell after disappointing expectations.

The Nikkei index fell 0.98 percent to close at 27,446.10 points. The broader Topix index also fell 0.66 percent to 1936.66 points.

Honda Motor Co shares fell 4.08 percent, after the automaker revised its forecast below the average estimate of 24 analysts, although it raised its full-year operating profit forecast.

Competitor Toyota Motor Co. fell 1.51 percent.

Sumitomo shares fell 12.74 percent after the tire maker cut its annual profit forecast.

The rubber sector fell 3.77 percent, the biggest loser among the 33 sub-indexes on the Tokyo Stock Exchange.

Wall Street ended trading last night with a sharp decline, after the gains made by Republicans in the midterm elections seemed less than what some expected, as well as investors awaiting inflation data that would give indications of the upcoming hike rates in interest rates.