Japanese shares dipped on Thursday after U.S. President Donald Trump signed into law congressional legislation backing protesters in Hong Kong, sparking fears of a fresh confrontation with Beijing that could derail their trade talks.

The Nikkei share average fell 0.02% to 23,433.16, off its 13 1/2-month peak hit on Tuesday while the broader Topix lost 0.1% to 1,709.33.

China has denounced the U.S. legislation as gross interference in its affairs and a violation of international law and has vowed counter-measures to safeguard its sovereignty and security.

Source : Reuters