Tokyo  - Stocks in Japan were up slightly on Wednesday despite bad news about the state of the country's economy and businesses.

The benchmark Nikkei 225 Stock Average was up 95.68 points, or 1.14 per cent, at mid-trading, as traders pin their hope on fiscal stimulus packages around the world.

The broader Topix index of all first-section issues rose 0.56 per cent to 822.5.

Japan's economy slid deeper into recession in the third quarter, a government report said Tuesday. The Bank of Japan's upcoming Tankan report on business sentiment is expected to be the gloomiest for decades, while electronics giant Sony Corp announced plans to shed about 16,000 jobs worldwide.

According to media reports, the Japanese government is to predict zero economic growth for the fiscal year starting April 1, 2009, the first stagnation since 2002.

Machinery orders dropped by 4.4 per cent in October compared with the previous month, the government said. On currency markets at 9 am (0000 GMT), the dollar was quoted at 92.31-36 yen, compared to Tuesday's 5 pm quote of 92.55-57 yen.

The euro was quoted at 1.2921-26 dollars, up from 1.2868-69 dollars, and at 119.30-35 yen, up from 119.10-14 yen the previous day. (dpa)