Nikkei slips on fresh global trade concerns, weak U.S. data

Reuters

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    TOKYO, Dec 3 (Reuters) - Japan's Nikkei average dropped on
Tuesday as fresh concerns about global trade surfaced after U.S.
President Donald Trump slapped tariffs on Brazil and Argentina,
while weak U.S. manufacturing data also dented sentiment. 
    The Nikkei share average  .N225  fell as much as 1.46% to
23,186.84. It pared some losses to 23,278.67 by 0152GMT, down
1.07%.
    The index also managed to climb above its 25-day moving
average of 23,245, a key technical level.
    President Trump on Monday said he would impose tariffs on
steel and aluminium imports from Brazil and Argentina, raising
worries he could also re-escalate trade tensions with China.
 urn:newsml:reuters.com:*:nL8N28C2M8
    Data from the U.S. Institute for Supply Management (ISM)
showed the U.S. manufacturing sector contracted for a fourth
straight month in November, hurting the market's optimism that
was sparked by strong manufacturing survey reading from China on
Monday.  urn:newsml:reuters.com:*:nL1N2890MD
    China on Monday banned U.S. military ships and aircraft from
visiting Hong Kong and slapped sanctions on several U.S.
non-government organisations in a response to U.S. legislation
passed last week supporting protests in the Asian financial hub.
 urn:newsml:reuters.com:*:nL4N28C1R1
    "Should Trump impose the so-called fourth tariffs on China
on Dec. 15, it would be a completely different scenario from
what most investors are expecting," said Masayuki Kubota, chief
strategist at Rakuten Securities.
    Investors have hoped that Washington will avoid imposing an
additional 15% tariff on about $156 billion worth of Chinese
products on Dec. 15 as part of "phase one" trade deal.
    The broader Topix  .TOPX  shed 0.9% to 1,699.04. A wide
range of shares dropped on the main board, with decliners
outnumbering gainers by a ratio of 83 to 17.
    Among large caps, Softbank Group  9984.T  fell 2.3%, while
Hitachi  6501.T  dropped 1.4%.
    Pigeon  7956.T  tumbled 15.7% after the baby goods maker
slashed its annual outlook following weak quarterly results.
    Nomura Holdings  8604.T  bucked the trend to rise 1.7% to a
1 1/2-year high after the country's top securities brokerage
firm and investment bank picked joint operations chief Kentaro
Okuda to lead its turnaround.  urn:newsml:reuters.com:*:nL4N28C2BD
    The reshuffle was announced on Monday as Nomura posted its
strongest quarterly profit in more than 17 years.
    Shares of Nintendo  7974.T  also hit a 1 1/2-year high.

 (Reporting by Tokyo Markets Team; editing by Uttaresh.V)
 ((hideyuki.sano@thomsonreuters.com; +81 3 4563 2768;))

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