Japan's Nikkei retreated on Thursday as investors took a breather after a 3-day rally even as broader market losses were contained by optimism around U.S.-China trade talks.
The Nikkei share average dropped 0.4 percent to 21,350.19 in midmorning trade, after scaling more than a 2-month high of 21,494.85 on the previous day. The benchmark had risen 2.5 percent over the past three days.
The broader Topix declined 0.3 percent to 1,609.52. Declining issues outnumbered advancing ones 1,194 to 808.