Tokyo stocks slip, Nintendo dives on Pokemon Go warning
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. –