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 fell 0.92% to 21,510.40 while the broader Topix 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 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 fell 3.8% and Sumitomo Mitsui Financial declined 0.8% as both financial groups reported falls in first-quarter profits.
Bank shares fell 1.2% as the entire sector struggles with low interest rates and weak fund demand, with top regional banking group Concordia falling 1.8% to three-year lows.
Konica Minolta 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 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 rose 4.4% after the measurement equipment with strength in 5G related products reported better-than-expected 65.3% growth in operating profits
Zozo jumped 11.7% after surprisingly strong quarterly profits. (Reporting by Hideyuki Sano; Editing by Simon Cameron-Moore)