Meanwhile, air bag manufacturer Takata could file for bankruptcy next week, sources told Reuters. The Japan Exchange Group later announced that shares of the company would be suspended from trade today due to the reports, Reuters said.
Takata is reportedly in the process of working out a deal with Key Safety Systems, an American automotive parts maker, according to Reuters. The company agreed to pay out $1 billion in penalties after pleading guilty to fraud earlier this year following a scandal involving defective air bags.
Shares of tech stocks traded in Seoul closed mostly lower following the softer lead from Wall Street. Samsung Electronics reversed earlier gains to close 0.22 percent down and SK Hynix finished 0.17 percent lower. Internet search company Naver bucked the trend to end 0.79 percent higher.
Line, a subsidiary of Naver traded on the Tokyo Stock Exchange, jumped 2.93 percent to close at 4,045 yen each. Deutsche Bank said in a note that it was maintaining its “Hold” rating for Line after acknowledging the company’s plans to re-organize its messaging app to become a “broader mobile platform.” While Deutsche Bank noted Line’s efforts were “encouraging,” near-term trends continue to drag on the company’s shares, the note said.
Oil prices edged higher after settling lower overnight for a second straight session, touching nearly six-month lows. Brent crude rose 0.43 percent to trade at $47.12 a barrel. U.S. crude traded 0.25 percent higher at $44.57.