Nikkei falls on caution on U.S.-China trade talks, earnings disappointments

  • Reuters
  • Stock Market News
Nikkei falls on caution on U.S.-China trade talks, earnings disappointments
Credit: © Reuters.

TOKYO, July 31 (Reuters) - Japanese shares slid on Wednesday, hurt by U.S. President Donald Trump warning China against dragging out trade talks while disappointing earnings hit Nintendo and banks.

The Nikkei share average .N225 fell 0.92% to 21,510.40 while the broader Topix .TOPX lost 0.71% to 1,564.40 as investors cautiously awaited the U.S. Federal Reserve's policy meeting later in the day.

As a new round of U.S.-China trade negotiations started in Shanghai, Trump warned China against waiting out his current presidential term before finalising a trade deal. Japan's earnings season in full swing, reactions to earnings dominated trading.

Nintendo Co Ltd 7974.T fell 3.4% after the game maker reported its operating profit fell 10% in the three months to June, below market expectations, despite stronger sales of its Switch console.

Sumitomo Mitsui Trust Holdings 8309.T fell 3.8% and Sumitomo Mitsui Financial 8316.T declined 0.8% as both financial groups reported falls in first-quarter profits.

Bank shares .IBNKS.T fell 1.2% as the entire sector struggles with low interest rates and weak fund demand, with top regional banking group Concordia 7186.T falling 1.8% to three-year lows.

Konica Minolta 4902.T fell 10.8% after the manufacturer of copy machines and other products posted unexpected net loss in the three months to June.

Decliners outnumbered advancers by 3 to 1 but there were some bright spots in earnings.

Sony 6758.T rose 5.1% after the company surprised the market by reporting on Tuesday a record first-quarter operating profit despite the slowing gaming business, as strong demand for multiple-lens camera systems for smartphones boosted sales of image sensors. 6754.T rose 4.4% after the measurement equipment with strength in 5G related products reported better-than-expected 65.3% growth in operating profits

Zozo 3092.T jumped 11.7% after surprisingly strong quarterly profits.

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