* 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 this week.
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 trade tensions.
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 and
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 Aug. 16.
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