(Updates for market close)

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 ( SONY ),

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 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 ( SONY )

and drugmaker Terumo ( TRUMF ), 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, by contrast, rose 0.3%.

The Nikkei's four biggest decliners in percentage terms were

drugmakers, led by Eisai's ( ESALF ) 4.8% tumble. Kyowa Kirin ( KYKOF )

and Sumitomo Pharma ( DNPUF ) each declined 4.5%,

followed by a 4.3% loss for Shionogi ( SGIOF ).

Mitsubishi Motors ( MMTOF ) was the worst-faring automaker,

sliding 3.3%. Toyota ( TM ) 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 ( MARUF ) was the Nikkei's biggest percentage

gainer, climbing 6.4%. While Mitsubishi Corp ( MSBHF ) advanced

3.7%, both Sumitomo Corp ( SSUMF ) and Itochu Corp ( ITOCF ) rose

3.5%, and Mitsui & Co ( MITSF ) added 3.1%.

(Reporting by Kevin Buckland; Editing by Sumana Nandy and

Mrigank Dhaniwala)