Tokyo  - The Japan market stayed in the negative territory Wednesday afternoon as the Shanghai composite index expanded losses to 3 per cent at Tokyo's closing.

Despite overnight gains on Wall Street, Japan's benchmark Nikkei 225 Stock Average was dragged down by 80.96 points, or 0.79 per cent, to 10,204 after investors turned to the China market due to lack of clear incentives.

The broader-based Topix index was also down 6.41 points, 0.67 per cent, at 943.25.

One exception was Sanyo Electric Co, whose stock soared 14 per cent at one point, following reports that the company was to supply batteries for hybrid cars produced by Toyota Motor Corp.

On currency markets at noon (0300 GMT), the dollar traded at 94.60-65 yen, down from Tuesday's 5 pm quote of 95.09-11 yen.

The euro traded at 1.4138-43 dollars, up from late Tuesday's quote of 1.4126-28 dollars, and at 133.80-85 yen, down from 134.33-37 yen. (dpa)