Japan's Topix down 2 pct, banks and Toyota fall

TOKYO, Aug 7 (Reuters) - Japan's Topix index fell 2 percent on Thursday, defying a range of potentially positive factors as gloom about the domestic economy led to profit-taking, with banks such as Mizuho Financial Group (8411.T) tumbling after disappointing results from U.S. peers.

Toyota Motor (7203.T) fell sharply ahead of its quarterly earnings after the close.

As of 0339 GMT, the benchmark Nikkei .N225 fell 1.6 percent to 13,042.77, while the broader Topix slid 25.84 points to 1,251.41. (Reporting by Taiga Uranaka)