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

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. With 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. Anritsu 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.