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July 20, 2016, 5:59 a.m. EDT

Rally in Japanese stocks stalls as U.S. dollar advances

Pokemon game helps McDonald’s, hurts Nintendo

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By Kenan Machado


Bloomberg News
Nintendo Co.'s Pokemon Go is set to be released in Japan.

Asian shares ended largely lower Wednesday, with a sharp rise in the U.S. dollar sending traders to the sidelines ahead of key earnings in Japan.

The Nikkei Stock Average /zigman2/quotes/210597971/delayed JP:NIK +0.26%  closed down 0.3% while Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 +0.09%   ended down 0.1%. The Shanghai Composite Index /zigman2/quotes/210598127/delayed CN:SHCOMP +0.31% closed down 0.3%.  Australia bucked the trend with a metals rally pushing up the S&P ASX 200 /zigman2/quotes/210598100/delayed AU:XJO +0.07%   up 0.7%. Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI -0.85%   rose 0.1%.

“Traders are now treading water,” said Angus Nicholson, a market analyst at IG Markets in Australia. Markets had a huge rally ahead of expectations that there will be a series of easing measures by central banks across the world, he said. “We have to yet to see those policies in reality,” he said.

The Nikkei continues to pull back from hefty gains made the week after Prime Minister Shinzo Abe’s big electoral victory on July 10, when his ruling coalition secured a bigger majority in Japan’s upper house, lifting hopes for economic stimulus.

Japanese banking and mining and steel stocks fell Wednesday. Steel-maker JFE Holdings Inc. /zigman2/quotes/204336633/delayed JP:5411 +2.41% dropped 4% while Nippon Steel & Sumitomo Metal Corp.   /zigman2/quotes/209782682/delayed JP:5401 +1.49%  shed 2.3%.

Nintendo Ltd.’s /zigman2/quotes/208063194/delayed JP:7974 -1.72%  blistering rally took a pause, with the stock losing 12.6% after Pokémon Go’s launch was delayed in Japan, its home market. Bank of Kyoto Ltd. /zigman2/quotes/206678655/delayed JP:8369 +1.30%  , which owns a nearly 4% stake in the gaming firm, closed down 5%. But the news didn’t hurt McDonald’s Holdings Company (Japan) Ltd. /zigman2/quotes/208911986/delayed JP:2702 -0.50% , which is launching a Pokémon promotion timed to the game’s rollout in Japan. The fast-food chain closed up 9.8%.

The yen /zigman2/quotes/210561789/realtime/sampled USDJPY +0.0274%  recovered slightly against the U.S. dollar, which traded at ¥106.19 as investors sought the safety of yen during a slightly off markets day.

Click to Play

China’s high-speed railway finally posts profit

China’s high-speed railway between Beijing and Shanghai served 130 million people last year, and a shareholder says it made a net profit of $1 billion--its first since opening in 2011. Photo: Reuters

Australia’s S&P ASX 200 recovered from early weakness to trade up 0.7% after metal prices recovered. Copper, nickel and zinc rose, bucking pressure from a strengthening U.S. dollar. Aluminum traded down 0.1%.

The U.S. dollar /zigman2/quotes/210598269/delayed DXY -0.34%  rose overnight to a four-month high against other currencies after government data showed U.S. home-building rose more than expected in June, suggesting the U.S. economy is gaining momentum heading into the second half of 2016. New home construction rose 4.8% in June from the previous month, according to the Commerce Department, beating estimates.

The report was the latest positive data coming from the U.S., raising expectations the Federal Reserve will raise interest rates as soon as September.

The People’s Bank of China surprised the market Wednesday, setting the yuan 0.04% stronger despite the rally in the greenback.

The mild yuan increase was seen by traders as an attempt by China to address complaints it is weakening its currency—a hot political topic as the U.S. heads into presidential elections.

—Kosaku Narioka, Ewen Chew and Alex Bitter contributed to this article

/zigman2/quotes/210597971/delayed
JP : Nikkei
28,249.24
+73.37 +0.26%
Volume: 0.00
Aug. 8, 2022 3:15p
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/zigman2/quotes/210598069/delayed
KR : Korea Exchange
2,493.10
+2.30 +0.09%
Volume: 409,148
Aug. 8, 2022 3:32p
loading...
/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,236.93
+9.91 +0.31%
Volume: 25.43B
Aug. 8, 2022 3:00p
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/zigman2/quotes/210598100/delayed
AU : S&P ASX
7,020.60
+5.00 +0.07%
Volume: 687,567
Aug. 8, 2022 5:25p
loading...
/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
20,030.38
-171.56 -0.85%
Volume: 1.15M
Aug. 8, 2022 3:46p
loading...
/zigman2/quotes/204336633/delayed
JP : Japan: Tokyo
¥ 1,446.00
+34.00 +2.41%
Volume: 6.28M
Aug. 8, 2022 3:00p
P/E Ratio
2.69
Dividend Yield
8.30%
Market Cap
¥813.03 billion
Rev. per Employee
¥73.56M
loading...
/zigman2/quotes/209782682/delayed
JP : Japan: Tokyo
¥ 2,116.00
+31.00 +1.49%
Volume: 10.40M
Aug. 8, 2022 3:00p
P/E Ratio
3.00
Dividend Yield
7.56%
Market Cap
¥1919.78 billion
Rev. per Employee
¥63.92M
loading...
/zigman2/quotes/208063194/delayed
JP : Japan: Tokyo
¥ 57,710.00
-1,010 -1.72%
Volume: 546,500
Aug. 8, 2022 3:00p
P/E Ratio
13.44
Dividend Yield
3.52%
Market Cap
¥6889.17 billion
Rev. per Employee
¥250.14M
loading...
/zigman2/quotes/206678655/delayed
JP : Japan: Tokyo
¥ 5,440.00
+70.00 +1.30%
Volume: 119,900
Aug. 8, 2022 3:00p
P/E Ratio
19.91
Dividend Yield
1.84%
Market Cap
¥406.14 billion
Rev. per Employee
¥37.44M
loading...
/zigman2/quotes/208911986/delayed
JP : JASDAQ
¥ 4,995.00
-25.00 -0.50%
Volume: 359,100
Aug. 8, 2022 3:00p
P/E Ratio
27.39
Dividend Yield
0.78%
Market Cap
¥667.45 billion
Rev. per Employee
¥143.53M
loading...
/zigman2/quotes/210561789/realtime/sampled
US : Tullett Prebon
135.0460
+0.0370 +0.0274%
Volume: 0.0000
Aug. 8, 2022 4:01a
loading...
/zigman2/quotes/210598269/delayed
US : U.S.: ICE Futures U.S.
106.26
-0.36 -0.34%
Volume: 0.00
Aug. 8, 2022 3:51a
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