Nikkei hobbled by trade worries, disappointing earnings

* Nikkei down slightly after 7 losing sessions
* Uncertainties over U.S.-China standoff keep investors on
edge
* Takeda Pharma, Nissan sink after earnings shock
* Mitsubishi Estate jumps on share buyback, governance
reform

By Hideyuki Sano
TOKYO, May 15 (Reuters) - Japanese share prices were capped
on Wednesday by concerns about the broader economic impact of
rising tensions between Washington and Beijing, while an array
of disappointing corporate earnings added to the downcast mood.
The Nikkei share average .n225 was off 0.08% at 21,051,
after spending much of the session under water, even after seven
straight days of losses until Tuesday.
The broader Topix .TOPX , which hit a four-month low the
previous day, was down 0.03% at 1534.51.
Trade-sensitive stocks came under pressure, even though
global shares have somewhat stabilised after U.S. President
Donald Trump made optimistic comments on trade talks with China.
Trump insisted trade discussions with China had not
collapsed, denying talks with Beijing had broken down after
Washington punctuated two days of negotiations last week with
another round of tariffs on Chinese imports. "Although we saw some recovery in share prices after Trump's
comments, there are heightened uncertainties over trade, which
are negative for stocks," said Shusuke Yamada, chief Japan FX
and equity strategist at Bank Of America Merrill Lynch.
Steelmakers fell 2.4% .ISTEL.T while shippers .ISHIP.T
dropped 0.9%.
Not helping sentiment was Japanese corporate earnings, with
net profits falling almost 5.0% from a year earlier in
January-March, according to Okasan Securities.
Takeda Pharmaceutical 4502.T fell as much as 8.6%. Japan's
biggest drugmaker forecast an unexpected operating loss for the
current year due to costs associated with the $59 billion
purchase of Shire Plc. That helped to bring down Tokyo Stock Exchange's drugmaker
subindex .IPHAM.T 3.1%, making it the worst performer.
Nissan Motor 7201.T slumped as much as to 8.0% to its
lowest levels since late December 2012, after the carmaker
forecast the weakest profit outlook in more than a decade.
"The earnings results suggested that the company is in much
worse shape than I have imagined," said Hiroshi Masushima,
market analyst at Monex Securities.
The carmaker, hit by former chairman Carlos Ghosn's arrest
last year and troubles at its North American business, also said
its dividend will be cut about 30% in another blow to investors
as its hefty payouts have been the only major attraction.
H2O Retailing 8242.T fell as much as 12.7% to seven-year
lows as the mid-tier department store operator posted weak
earnings and guidance.
On the upside, Mitsubishi Estate 8802.T jumped as much as
11.2% after the real estate developer announced its first share
buyback and a plan to abolish anti-takeover steps.
Decliners slightly outnumbered advancers by 1065 to 992.

(Editing by Shri Navaratnam)