Japan's Nikkei average dipped 0.2 percent in choppy trade on Wednesday, weighed down by investor caution after disappointing U.S. housing data, but blue-chip stocks such as Canon Inc <7751.T> and carmakers jumped after brokerage upgrades.

Sanyo Electric Co <6764.T> soared as much as 17 percent to a near two-month high, after a source familiar with the matter said Toyota would buy batteries for hybrid cars from Sanyo to keep pace with growing demand for cleaner vehicles.

The benchmark Nikkei <.N225> fell 24.46 points to 10,260.50, while the broader Topix <.TOPX> was flat at 949.32.

(Reporting by Aiko Hayashi)

Toyota Nikkei 225 Japan