Tokyo stocks slip, Nin­tendo dives on Poke­mon Go warn­ing

The Myanmar Times - - International Business -

TOKYO stocks ended lower for a sec­ond ses­sion yes­ter­day, giv­ing up early gains with Nin­tendo slump­ing af­ter it down­played the im­pact of the Poke­mon Go phe­nom­e­non on its bot­tom line.

The bench­mark Nikkei 225 hung in pos­i­tive ter­ri­tory for much of the day as deal­ers eyed the start of Ja­pan’s lat­est earn­ings sea­son as well as a pair of cen­tral bank meet­ings in Ja­pan and the US this week.

But the in­dex could not hold its gains, end­ing down 0.04 per­cent, or 6.96 points, at 16,620.29.

The broader Topix in­dex of all first-sec­tion shares lost 0.16pc, or 2.15 points, to end at 1325.36.

In­vestors ap­peared lit­tle moved by data yes­ter­day show­ing Ja­pan en­joyed its first half-year trade sur­plus since the 2011 Fukushima nu­clear dis­as­ter, even as ex­ports con­tin­ued to strug­gle.

“With a bunch of events lined up this week ... in­vestors are likely to take a wait-and-see ap­proach,” Hi­toshi Asaoka, a se­nior strate­gist with Mizuho Trust and Bank­ing, told Bloomberg News.

Nearly 80pc of an­a­lysts polled by Bloomberg ex­pected Bank of Ja­pan pol­i­cy­mak­ers to re­lease fresh stim­u­lus mea­sures af­ter they wrap up a two­day meet­ing on July 29.

Games firm Nin­tendo was the big loser yes­ter­day with the stock div­ing 17.71pc to 23,220 yen in re­sponse to a warn­ing af­ter mar­kets closed last week that Poke­mon Go’s suc­cess would not trans­late into bumper prof­its.

The firm, which cre­ated the Poke­mon fran­chise, had more than dou­bled in a huge rally fol­low­ing the app’s re­lease this month. Mar­kets cheered the game’s global suc­cess as a thumb­sup for Nin­tendo’s nascent move into the mo­bile games mar­ket.

But late on July 22 the firm warned that, while it held a stake in both the game’s US devel­oper and Poke­mon’s copy­right owner, the ben­e­fits to its own bot­tom line would be “lim­ited”.

McDon­ald’s Ja­pan tum­bled 11.60pc to 3200 yen. The chain’s stock had soared in re­cent days on news it was a spon­sor for the wildly pop­u­lar Poke­mon game.

Bank­ing gi­ant Mit­subishi UFJ Fi­nan­cial Group shed 1.16pc to close at 508.9 yen and ri­val Su­mit­omo Mit­sui Fi­nan­cial Group was down 0.43pc at 3176 yen.

Mar­ket heavy­weights Fanuc, a fac­tory ro­bot maker, and Uniqlo op­er­a­tor Fast Re­tail­ing both bucked the down­trend, ris­ing 1.55pc to 17,615 yen and 1.62pc to 33,170 yen, re­spec­tively.

The dol­lar re­versed early gains to drop to 106.11 yen from 106.19 yen on July 22 in New York. –

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