TOKYO, Nov 14 (Reuters) - Japan's Nikkei share average fell on Monday from a two-month high hit in the previous session, as investors chose to book profits and market heavyweight SoftBank Group tumbled after its Vision Fund investment arm reported another big quarterly loss.

The Nikkei index fell 0.76% to 28,047 by the midday close, while the broader Topix dropped 0.65% to 1,964.90.

"Investors sold stocks for profit-taking after the Nikkei rose sharply in the previous session," said Shigetoshi Kamada, general manager at the research department of Tachibana Securities.

The S&P 500 and Nasdaq closed sharply higher on Friday, extending a rally started the day before after a soft inflation reading raised hopes the Federal Reserve would get less aggressive with U.S. interest rate hikes.

SoftBank Group tanked 12.28% to become the biggest drag on the Nikkei, after the technology start-up investor posted a heavy loss at its Vision Fund investment arm for a third consecutive quarter.

"The outlook for IT companies is dim amid a slowing global economy. Expectations for SoftBank Group's growth have been shrinking as there is a concern that the value of its portfolio companies may not grow in this environment," said Kamada.

Olympus dropped 9.13% after the medical equipment maker cut its annual operating profit forecast.

Dowa Holdings lost 14.21% to become the biggest loser on the Nikkei after the non-ferrous metal maker flagged a decline in profit.

Bucking the trend, Toto gained 5.92% to become the top gainer on the Nikkei, while cosmetics maker Shiseido jumped 4.22%. (Reporting by Junko Fujita; Editing by Subhranshu Sahu)