Nikkei drops as Trump offers mixed signals on China trade deal

TOKYO, Nov 13 (Reuters) - Japanese shares slipped on
Wednesday after U.S. President Donald Trump left investors on
tenterhooks as they await details on progress in negotiations
with China to end a lingering trade war that has rattled the
global economy.
The Nikkei share average .N225 fell 0.78% to 23,336.27,
having cooled since it hit an 13-month high of 23,591 last
Friday. The broader Topix .TOPX lost 0.41% to 1,702.63.
Trump on Tuesday dangled the prospect of completing an
initial trade deal with China "soon", but at the same time
warned he would raise tariffs on Chinese goods "very
substantially" if China does not strike a deal. "I guess it was his usual tactics but it wasn't positive,"
said Hideyuki Ishiguro, senior strategist at Daiwa Securities.
"The market has been overheating so we need a period to cool
down a bit too."
Many market players have said a correction is inevitable
after the Nikkei had risen sharply in recent months - more than
17% up from its seven-month low marked in early August.
Among blue chips, Nissan Motor 7201.T slid 1.3% after the
carmaker cut its full-year forecast to an 11-year low and posted
a 70% slump in quarterly profit. Since the arrest of the firm's
former chairman Carlos Ghosn almost a year ago, the company has
lost about 30% of value. Elsewhere, GMO Payment Gateway 3769.T dropped 5.1% after
the e-commerce settlement service company's quarterly earnings
and profit guidance for the year to next September fell short of
market expectations.
Fujifilm 4901.T , on the other hand, jumped 7.0% after the
company reported strong quarterly earnings and estimated it
would make a record annual profit.
On the whole, investor sentiment remained fairly upbeat,
with investors snapping up technology shares that are sensitive
to the global economic outlook. Keyence 6861.T rose 0.9% while
Murata Manufacturing 6981.T gained 0.8%.
Meanwhile the index of the Jasdaq .NOTC start-up market
ticked up 0.11% to hit an 11-month high.
Real estate investment trusts (REITs) extended their recent
losses, as residual hopes that a U.S.-China trade deal will
ultimately be reached dented their allure as an alternative to
low-yielding bonds.
The Tokyo REIT index .TREIT fell 0.5% to hit its lowest
level in nearly two months, having fallen 5.8% so far this
month.

(Editing by Kenneth Maxwell)