* Earning outlook continues to deteriorate
* SoftBank Group falls as T-Mobile/Sprint deal faces more hurdle
* Nissan down, proxy advisor calls for oust of CEO
TOKYO, June 12 (Reuters) - Japan’s Nikkei share average fell on Wednesday, snapping a three-day winning streak, as the tough stance taken by U.S. President Donald Trump in his latest comments on trade negotiations with China fed worries of a global slowdown.
The Nikkei fell 0.4% to 21,129.72, with an immediate resistance seen at its current 100-day moving average at 21,272. The broader Topix shed 0.5% to 1,554.22. Declining shares outnumbered advancing ones 1,329 to 717.
The market’s recovery over the past several sessions from multi-month lows touched earlier in June is beginning to fade, largely due to concerns over the impact of a protracted U.S.-China trade war.
Trump said on Tuesday that he was holding up a trade deal with China and had no interest in moving ahead unless Beijing agrees again to four or five “major points”, without specifying what those issues were.
“If you list up negative factors, there are so many, starting from U.S-China frictions and Brexit. When you try to list up positive factors, they are few and far between,” said Seiki Orimi, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities.
Indeed, Japanese companies’ earnings outlook continued to deteriorate. The forward earnings per share of Topix has dropped 6.7% from its peak late last year and is now down 2.1% from a year ago.
In a rare bright spot, Japan’s machinery orders, a key leading gauge of capital spending, unexpectedly rose for a third straight month in April, helped by the strength in domestic demand.
Yet that meant little in light of the overwhelming uncertainties Sino-U.S. frictions are posing to companies’ long-term investment plans, particularly in the technology sector.
“Even if we have some good numbers, people won’t take them at face value given what’s going on between the U.S. and China,” said Hiroshi Watanabe, economist at Sony Financial Holdings.
“Cyclically speaking, it is about the time the global semi-conductor cycle could bottom out. But trade in tech products is unlikely to recover given disruptions to supply chains, further delaying any potential bottom,” he said.
Electric machinery company shares were down 0.7%, underperforming the market.
SoftBank Group fell 2.4% after 10 U.S. states led by New York and California filed a lawsuit to stop T-Mobile US Inc’s $26 billion purchase of Sprint Corp, a subsidiary of SoftBank Group.
Nissan Motor fell 0.6% as its governance crisis appeared to deepen. Leading proxy advisory firm ISS has urged Nissan shareholders to vote against the reappointment of Chief Executive Officer Hiroto Saikawa amid a widening rift with its alliance partner Renault over governance reform. (Editing by Simon Cameron-Moore)