Asia: Japan retreats after promising start

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LONDON (ShareCast) - Shares in Tokyo settled lower, after a strong start to the session, as traders look ahead to the key earnings season.

The benchmark Nikkei 225 index briefly topped 11,000 before profit takers took the index down 102 points to settle at 10,824 in Tokyo. The Hang Seng rose 91 points at 23,671, a 21-month high.

Profit takers moved in ahead of earnings this week from Canon (Other OTC: CAJFF - news) , Sumitomo Mitsui Financial (NYSE: SMFG - news) , Toshiba, Softbank (Xetra: 891624 - news) and Nomura.

Shares on the move on Monday included manufacturing robot maker Fanuc which tumbled 7% after lowering its full-year outlook.

Advantest sank 5.2% after reports that the group could report a potential drop in full year earnings.

Hitachi High-Technologies, majority owned by Hitachi (Other OTC: HTHIY - news) , was another big faller at the start of the week. Its shares were down 10% on concern that weaker than expected third quarter results may lead to lower than expected full year results.

Hong Kong banks offset weakness among property firms on Monday. Shares of China Construction Bank rose 0.6%, HSBC (LSE: HSBA.L - news) gained 0.9%, Bank of China added 0.8%, Bank of Communication advanced 1.41% while Bank of East Asia rallied 1.10%.

Meanwhile China Cosco fell 5% after the cargo fleet operator said it expects to a report another year of losses in 2012.



CJ