(Corrects to say there are 33 Topix subindexes in 4th paragraph)
* Exporters sold after yen strengthens
* Banks, insurers underperform on falling U.S. yields
By Ayai Tomisawa
TOKYO, Dec 4 (Reuters) - Japan's Nikkei tumbled on Tuesday afternoon with foreign investors selling off exporters and financials, while profit-taking continued on cyclical stocks that rallied the day before.
The Nikkei share average fell 2.2 percent to 22,076.73 in mid-afternoon trade.
The index rose to a two-week high on Monday as investors took heart after the United States and China suspended the imposition of new tariffs on the weekend.
The broader Topix fell 2.3 percent to 1,650.92, with all of its 33 subindexes in negative territory.
Analysts said that the market had priced in the Sino-U.S. trade truce and was looking to more events ahead, such as U.S. jobs data on Friday and the Federal Reserve's policy meeting later this month.
"Even after the market priced in the trade news, there are still major events ahead so investors realised that they can't be overjoyed yet," said Yutaka Miura, a senior technical analyst at Mizuho Securities, adding that foreign investors and hedge funds are seen reducing their positions on risky assets.
A stronger yen also soured sentiment, with traders citing stepped up selling by foreign investors that depressed exporters.
Fanuc Corp stumbled 4.8 percent, Komatsu Ltd dropped 4.3 percent and Tokyo Electron slid 2.8 percent.
The dollar fell 0.6 percent to 113.10 yen.
Banks and insurers, which typically accumulate higher-yielding products such as foreign bonds in their portfolios, lost ground after the U.S. benchmark 10-year yield slipped to 2.966 percent, the lowest since Sept. 13.
Mitsubishi UFJ Financial Group dropped 2.4 percent, Sumitomo Mitsui Financial Group stumbled 2.6 percent, while Dai-ichi Life Holdings shed 3.2 percent.
Baby bottle maker Pigeon Corp plunged 4.3 percent after the firm's decision to keep its full-year outlook unchanged disappointed investors, although its net profit for the February-October period rose 17 percent on the year to 12.2 billion yen.
Tea beverage maker Ito En stumbled 5.5 percent after its net profit for the May-October period dropped 5.9 percent on the year to 8.698 billion yen, pulled down by a special loss related to torrential rain that hit Japan in July. (Editing by Jacqueline Wong)