* 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
morning 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 declined 0.9% to 21,101.14
in midmorning trade.
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 6.4%, Advantest Corp 6857.T
tumbled 4.1%, Tokyo Electron 8035.T shed 2.5%, and Sony Corp
6758.T slid 3.6%.
"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 5.6%, removing 65 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. Mining shares lost ground after oil prices extended falls
from the previous day amid surging U.S. crude inventories. Inpex
Corp 1605.T stumbled 4.3% and Japan Petroleum Exploration Co
1662.T dropped 1%.
Elsewhere, Daiichi Sankyo Co 4568.T , which was trading in
negative territory in early trade, rose 0.6% after Nikkei
Business reported that the drugmaker is in talks with several
companies to sell its wholly owned over-the-counter (OTC) drug
unit, with the final price likely to reach around 100 billion
yen ($900 million). Discount clothing chain Nishimatsuya Chain Co 7545.T
surged 4.6% after its same-store sales in May rose 7.5% on the
year thanks to strong sales in summer clothes as the weather was
warm during Japan's Golden Week holidays.
The broader Topix .TOPX declined 0.6% to 1,536.57.
Declining issues outnumbered advancing ones 1,296 to 764.
(Editing by Simon Cameron-Moore)