Nikkei drops as U.S.-China trade tensions hit tech shares

* Daiichi Sankyo turns positive on hopes for its OTC
business sale
* SoftBank Group dives more than 5%

By Ayai Tomisawa
TOKYO, May 23 (Reuters) - Japan's Nikkei dropped on Thursday
after renewed U.S.-China trade tensions dragged down technology
shares, while index-heavyweight SoftBank Group fell more than 5
percent.
The Nikkei share average .N225 ended 0.6% lower at
21,151.14.
Tech shares were sold heavily after media reports on
Wednesday said the United States was considering sanctions on
video surveillance firm Hikvision. TDK Corp 6762.T dived 6.5%, Advantest Corp 6857.T
declined 2.6%, Tokyo Electron 8035.T shed 2.5%, and Sony Corp
6758.T slid 3.7%.
"Investors are worried that the U.S. may put restrictions on
more companies in the future, not just Huawei and Hikvision,"
said Takuya Takahashi, a strategist at Daiwa Securities. "If
that happens, the market will grow more concerned that growth in
a new industry such as 5G will be hampered."
SoftBank Group 9984.T , which has a stake in Sprint Corp
S.N , tanked 5.3%, removing 62 points from the Nikkei benchmark
index after sources told Reuters that U.S. Justice Department's
antitrust division staff have recommended the agency blocks
T-Mobile US Inc's TMUS.O $26 billion acquisition of smaller
rival Sprint. Elsewhere, Daiichi Sankyo Co 4568.T , which was trading in
negative territory in early trade, rose 1.2%. Driving the
increase was a report from Nikkei Business that said the
drugmaker was in talks with several companies to sell its wholly
owned over-the-counter drug unit for around 100 billion yen
($900 million). Discount clothing chain Nishimatsuya Chain Co 7545.T
surged 3.2% after its same-store sales in May rose 7.5% from a
year earlier, thanks to strong sales in summer clothes as the
weather was warm during Japan's Golden Week holidays.
The broader Topix .TOPX declined 0.4% to 1,540.58.
Declining issues outnumbered advancing ones 1,258 to 783.

(Editing by Sam Holmes)