Nikkei snaps 3-day winning streak as fresh trade worries weigh

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* Earning outlook continues to deteriorate

* SoftBank Group falls as T-Mobile/Sprint deal faces morehurdle

* Nissan down, proxy advisor calls for oust of CEO

TOKYO, June 12 (Reuters) - Japan's Nikkei share average .N225 fell on Wednesday, snapping a three-day winning streak,as the tough stance taken by U.S. President Donald Trump in hislatest comments on trade negotiations with China fed worries ofa global slowdown.

The Nikkei .N225 fell 0.4% to 21,129.72, with an immediateresistance seen at its current 100-day moving average at 21,272.The broader Topix .TOPX shed 0.5% to 1,554.22. Decliningshares outnumbered advancing ones 1,329 to 717.

The market's recovery over the past several sessions frommulti-month lows touched earlier in June is beginning to fade,largely due to concerns over the impact of a protractedU.S.-China trade war.

Trump said on Tuesday that he was holding up a trade dealwith China and had no interest in moving ahead unless Beijingagrees again to four or five "major points", without specifyingwhat those issues were. urn:newsml:reuters.com:*:nL2N23I153

"If you list up negative factors, there are so many,starting from U.S-China frictions and Brexit. When you try tolist up positive factors, they are few and far between," saidSeiki Orimi, senior investment strategist at Mitsubishi UFJMorgan Stanley Securities.

Indeed, Japanese companies' earnings outlook continued todeteriorate. The forward earnings per share of Topix has dropped6.7% from its peak late last year and is now down 2.1% from ayear ago.

In a rare bright spot, Japan's machinery orders, a keyleading gauge of capital spending, unexpectedly rose for a thirdstraight month in April, helped by the strength in domesticdemand. urn:newsml:reuters.com:*:nL4N23I2JS

Yet that meant little in light of the overwhelminguncertainties Sino-U.S. frictions are posing to companies'long-term investment plans, particularly in the technologysector.

"Even if we have some good numbers, people won't take themat face value given what's going on between the U.S. and China," said Hiroshi Watanabe, economist at Sony Financial Holdings.

"Cyclically speaking, it is about the time the globalsemi-conductor cycle could bottom out. But trade in techproducts is unlikely to recover given disruptions to supplychains, further delaying any potential bottom," he said.

Electric machinery company shares .IELEC.T were down 0.7%,underperforming the market.

SoftBank Group9984.T fell 2.4% after 10 U.S. states ledby New York and California filed a lawsuit to stop T-Mobile USInc's TMUS.O$26 billion purchase of Sprint CorpS.N , asubsidiary of SoftBank Group. urn:newsml:reuters.com:*:nL2N23I0K9

Nissan Motor7201.T fell 0.6% as its governance crisisappeared to deepen. Leading proxy advisory firm ISS has urgedNissan shareholders to vote against the reappointment of ChiefExecutive Officer Hiroto Saikawa amid a widening rift with itsalliance partner Renault RENA.PA over governance reform. urn:newsml:reuters.com:*:nL4N23J01Yurn:newsml:reuters.com:*:nL4N23J0JA (Editing by Simon Cameron-Moore) ((hideyuki.sano@thomsonreuters.com; +81 3 6441 1827; ReutersMessaging: hideyuki.sano.thomsonreuters.com@reuters.net))

This article appears in: Stocks , World Markets , Politics

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