Nikkei snaps 3-day winning streak as fresh trade worries weigh

* 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

By Hideyuki Sano
TOKYO, June 12 (Reuters) - Japan's Nikkei share average
.N225 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 .N225 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 .TOPX 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 .IELEC.T were down 0.7%,
underperforming the market.
SoftBank Group 9984.T fell 2.4% after 10 U.S. states led
by New York and California filed a lawsuit to stop T-Mobile US
Inc's TMUS.O $26 billion purchase of Sprint Corp S.N , a
subsidiary of SoftBank Group. Nissan Motor 7201.T 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 RENA.PA over governance reform.
(Editing by Simon Cameron-Moore)