* Machinery, shippers rise on short-covering
* Panasonic tumbles 4 pct on weaker-than-expected profit forecast
* Mitsubishi Motors dives after Nomura cuts target price
* Subaru off 2 pct after early release of results
By Ayai Tomisawa
TOKYO, May 10 (Reuters) - Japan’s Nikkei rebounded on Friday morning, snapping a four-day losing streak as investors waited for the outcome of U.S.-China trade talks, while Panasonic tumbled 4 percent on a weaker-than-expected profit forecast.
The Nikkei share average rose 0.6 percent to 21,522.89 in midmorning trade after four losing sessions. The benchmark index has shed 4.3 percent since reaching a 2019 high on April 24.
U.S. President Donald Trump has threatened to impose additional tariffs on Chinese goods if the latest round of talks fail to produce a deal. Negotiations are set to continue on Friday in Washington.
U.S. stocks fell sharply on Thursday, but recovered much of those losses after Trump said he had received a “beautiful letter” from Chinese President Xi Jinping.
“The market has not priced in the outcome yet as there is a 50 percent chance that Trump will raise tariffs, while the other half chance is to delay the decision,” said Shogo Maekawa, a global market strategist at JPMorgan Asset Management.
“The market could go either direction,” he added.
Machinery makers and shippers recovered some of their losses this week on short-covering. Fanuc Corp rose 2.6 percent, Yaskawa Electric soared 5.5 percent and Kawasaki Kisen added 2.1 percent.
Panasonic Corp fell 4 percent after it forecast operating profit for the year through March 2020 to slump 27 percent to 300 billion yen ($2.7 billion) from a year earlier.
That was a bigger drop than the 12 percent decline expected by analysts, according to Refinitiv data.
Mitsubishi Motors tumbled 10 percent after Nomura Securities cut its target price by 23 percent to 560 yen, citing the yen’s appreciation against the Australian dollar and euro.
The carmaker’s strategy to focus on SUVs and pick-up trucks and markets such as Southeast Asia and Australia was right, Nomura analysts said, but they added “the company faces a slowdown in key markets as well as increased fixed costs and a strong yen.”
Subaru Corp dropped 2 percent after it inadvertently uploaded its financial results on its website earlier than planned.
Its operating profit fell 48.5 percent to 195.53 billion yen ($1.78 billion) in the year ended in March, hit by a string of recalls, production stoppages and inspection cheating.
The broader Topix rose 0.8 percent to 1,563.51. (Editing by Darren Schuettler)