Nikkei dips on fading U.S. charge lower views, earnings warning

* Traders look to Japan earnings season amid commerce worries

* Asahi Group Holdings down after AB InBev deal

* Semi-conductor shares prolong positive aspects

By Hideyuki Sano

TOKYO, July 22 (Reuters) – Japanese shares dipped on Monday as hopes for a big U.S. Federal Reserve charge lower light and traders took a cautious stance forward of the home earnings seasons, which begins this week.

The Nikkei share common fell 0.23% to 21,416.79 whereas the broader Topix shed 0.49% to 1,556.37, with low turnover of 1.63 trillion yen, about 30% beneath the annual common.

On Friday, U.S. shares fell following a Wall Road Journal report that the Federal Reserve plans to chop rates of interest by solely a quarter-percentage level on the finish of the month.

On the entire, buying and selling was gentle with many traders awaiting earnings for clues available on the market, which has moved in a slender vary prior to now few months on uncertainties over Sino-U.S. commerce battle.

“Though the U.S. and China have struck a truce on commerce, the fact is that there was a tariff hike in June,” stated Masahiro Ayukai, senior strategist at Mitsubishi UFJ Morgan Stanley Securities.

“Japan and South Korea have spats whereas the world’s financial system is slowing down. Traders want to what sort of steering firms will present beneath such circumstances,” he stated.

Quarterly earnings reviews by Japanese firms can be in full swing later this week, with Canon and Nidec asserting outcomes after the market shut on Wednesday.

The market confirmed no response to Sunday’s Japanese higher home election, the place Prime Minister Shinzo Abe’s ruling bloc received a stable majority.

The most important movers of the day included Asahi Group Holdings , which fell 8.9% after the beverage agency stated it will purchase the Australian operations of Anheuser-Busch InBev and challenge as much as 200 billion yen ($1.9 billion) of shares to fund it.

Bucking the broader decline, chip-related shares prolonged their positive aspects following upbeat incomes steering from Taiwan’s TSMC final week.

Taiyo Yuden Co Ltd rose 3.3%, whereas Advantest Corp rose 1.9%, and Display Holdings rose 2.7%.

Sanoh Industrial gained 8.4% in heavy commerce, having risen 30% since Thursday, when the corporate introduced it developed a battery cell that may straight convert warmth into electrical energy.

Enhancing by Richard Borsuk and Sam Holmes

Author: Maxwell C.

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