Japan's Nikkei snaps 7-day winning streak as US tariff worries weigh

By Kevin Buckland

TOKYO, May 7 (Reuters) - Japan's Nikkei share average edged lower on Wednesday, snapping a seven-session winning streak by the tiniest of margins, as pharmaceutical shares sank after U.S. President Donald Trump said he would reveal tariffs on drugs over the next two weeks.

Automaker stocks also slumped as Japanese investors returned from a four-day weekend to an overall stronger yen, which reduces the value of overseas revenues. Sony Group 6758.T, which runs a movie studio, slid following Trump's announcement of a 100% levy on foreign-made films.

Tariff worries overshadowed news that U.S. Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer will meet China's economic tsar, He Lifeng, in Switzerland this weekend for talks that could start the process of de-escalation in their tense trade stand-off.

Investors were also reluctant to take the Nikkei above Friday's five-week peak before hearing Federal Reserve Chair Jerome Powell's stance on future interest rate cuts at the conclusion of the U.S. central bank's two-day policy meeting later in the day.

The Nikkei .N225 ended the day down 0.14%, dipping from just north of flat right at the closing bell.

The biggest drags on the index by index points included Sony and drugmaker Terumo 4543.T, which lost 4% and 2.8% respectively.

With so many issues regarding tariffs still unresolved, investors were not in a position to chase the market higher, said Nomura strategist Fumika Shimizu.

Overall, the Nikkei's performance was fairly balanced, with 114 of its 225 components rising, 109 falling and two flat.

The broader Topix .TOPX, by contrast, rose 0.3%.

The Nikkei's four biggest decliners in percentage terms were drugmakers, led by Eisai's 4523.T 4.8% tumble. Kyowa Kirin 4151.T and Sumitomo Pharma 4506.T each declined 4.5%, followed by a 4.3% loss for Shionogi 4507.T.

Mitsubishi Motors 7211.T was the worst-faring automaker, sliding 3.3%. Toyota 7203.T shed 2.7% ahead of earnings on Thursday.

Trading houses were a bright spot after Berkshire Hathaway affirmed its commitment to investments in those businesses even as Warren Buffett stepped aside as CEO.

Marubeni 8002.T was the Nikkei's biggest percentage gainer, climbing 6.4%. While Mitsubishi Corp 8058.T advanced 3.7%, both Sumitomo Corp 8053.T and Itochu Corp 8001.T rose 3.5%, and Mitsui & Co 8031.T added 3.1%.