Japanese equities retreat as investors are cautious ahead of earnings announcement and central decisions

TOKYO (Reuters) – Japanese stocks have yielded Monday on profit taking, while investors are cautious before the release of company results and monetary policy decisions from the Bank of Japan and the Federal Reserve this week.

The Nikkei benchmark <.N225> fell 0.2% to 2,161.8.80, moving away from a two and a half month high on Thursday despite the positive signs of Wall Street.

And the impact of profit taking on Japanese suppliers of electronic components of Chinese Huawei. Morata Manufacturing fell 2%, TDK Corp. 1.7% and Taiyuan 2%.

The shares gained last week thanks to the announcement of the resumption of trade negotiations between the United States and China, but they have lost momentum today, while expectations regarding the pace of growth in the United States and China are growing. Progress of negotiations between the two parties decreased in Shanghai.

Kyens Corp shares fell 4.4% after the company's 15% decline in profits from April to June compared to the previous year.

Tokyo Electron dropped 0.8% after a chip maker announced, after shutting down its operation on Friday, that its operating profit had dropped 41% between April and June, a decline much larger than that agreed by badysts.

In contrast to the downward trend, Softbank weighed heavily on the Nikkei and gained 3.9%. Softbank Bank Masayoshi Son said on Monday that the company would invest $ 2 billion in a taxi application.

The broad TOPIX index fell 0.2% to 1,568.57 points. The volume of transactions was low at 1.74 trillion yen ($ 16 billion), compared to the daily average of 2.33 trillion yen over the past year.

(Reuters)