Nikkei falls as chip-related stocks weigh; market focuses on U.S.-China talks
* Chip equipment makers shed after weak Sox Index
* FamilyMart UNY tumbles
By Ayai Tomisawa
TOKYO, Aug 20 (Reuters) - Japan's Nikkei fell on Monday
morning as chip-related stocks weakened, tracking their U.S.
peers's declines on Friday, while investors awaited developments
from trade talks scheduled between the United States and China
The Nikkei share average dropped 0.2 percent to
22,230.46 at the midday break.
After a plunge in Turkish lira lifted demand in the
safe-haven yen, risk sentiment recovered in the Japanese market
last week on news China and the United States will hold
lower-level trade talks, raising hopes for a de-escalation in
Reports said that the talks in Washington would take place
on Aug. 21 and 22, just before new U.S. tariffs on $16 billion
of Chinese goods take effect.
"There are hopes that the trade war could be resolved soon,
but at the same time, it's too good to be true if the trade
tension will be resolved completely before $16 billion on new
U.S. tariffs on Chinese goods take effect," said Yutaka Miura, a
senior technical analyst at Mizuho Securities.
Sumco Corp declined 2.3 percent, Tokyo Electron
shed 1.3 percent and Advantest Corp dropped
1.5 percent, after the Philadelphia SE Semiconductor Index
dropped 0.7 percent on Friday.
Other exporters also lost ground. Toyota Motor Corp
shed 1.0 percent and Panasonic Corp fell 1.4 percent
FamilyMart UNY Holdings tumbled 7.8 percent after
soaring 5.4 percent in the previous session as investors chased
the stock higher after trading house Itochu Corp raised
its stake in the supermarket operator to 50.1 percent from 41.5
percent. Itochu said 10.9 million shares of FamilyMart were
offered in a takeover bid by the wholly owned unit of the
company, at the price of 11,000 yen per share, from July 17 to
A fund manager at a Japanese asset management firm said that
there were more applicants than the number of shares offered,
triggering selling from investors who failed to participate in
the takeover bid.
The broader Topix declined 0.4 percent to 1,691.24.
(Editing by Simon Cameron-Moore)
© 2018 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.