Asia report: Markets close lower, while Pokemon keeps Nintendo's fires burning

Markets in Asia slipped on Friday, though Japan’s flavour of the month Nintendo joining McDonald’s on the upside after the pair joined forces in finally launching hit mobile game Pokemon Go in the country.

The Nikkei 225 finished down 1.09% at 16,627.25, with stocks coming under pressure from a relatively stronger yen.

Shares in video game giant Nintendo added 0.79%, far below their near-5% rise seen during the session.

Nintendo shares have almost doubled in value since Pokemon Go was first launched in the US - the company owns a chunk of both licensing venture The Pokemon Company and developer of the game Niantic.

The app has been released in the US, Australia, New Zealand, Canada, much of Europe and now Pokemon’s native Japan.

McDonald’s Holdings shares were up 4.17% in Tokyo, also paring back earlier gains of almost 8%.

The quick-service restaurant chain partnered with Nintendo for the domestic launch of the game, with its outlets becoming ‘gyms’, where players can train their Pokemon characters.

Users of the app in the country received a list of nine instructions from the National Center for Incident Readiness and Strategy over the use of the app, including advice not to use their real names and warnings over fake apps.

The yen strengthened against the greenback, after Bank of Japan governor Haruhiko Kuroda told the BBC that he was ruling out the possibility of so-called helicopter money - the printing of money and distributing payouts - to deal with deflation in the domestic economy.

Kuroda reportedly spoke to the BBC in mid-June, but the interview was not released until this week.

The yen was last 0.36% weaker at JPY 106.20 per $1, having slipped after markets closed.

“The fact we've only seen a modest recovery in the pair suggests traders see very little appetite for this uber-unconventional policy change,” said IG chief market strategist Chris Weston.

On the mainland, the Shanghai Composite Index lost 0.87% to close at 3,012.43, while the Shenzhen Composite was 0.91% lower at 2,019.56.

South Korea’s Kospi lost 0.09% to finish at 2,010.34, while the Hang Seng Index closed down 0.16% at 21,964.27.

Shares in Korean technology giant Samsung Electronics fell 1.75% after a report before markets opened said the company was suing Chinese rival Huawei Technologies for patent infringements.

It was the latest move in an ongoing legal battle between the pair, with Huawei filing claims in the US and China in May over alleged 4G patent infringement by Samsung.

Carmaker Kia closed relatively flat, with investors seemingly unenthused about the firm’s move into manufacturing in India.

Reports on Friday said Kia is expected to select a location for its first India factory next month, and is likely to utilise the existing Indian supplier base of its affiliate Hyundai Motor, whose shares dropped 0.77%.

Oil prices fell in Asian trading, with Brent crude last off 0.24% at $46.09 per barrel and West Texas Intermediate down 0.58% at $44.49.

In Australia, the benchmark S&P/ASX 200 closed down 0.26% at 5,498.20, while New Zealand’s S&P/NZX 50 went against the regional trend and closed 0.2% higher to a new record close of 7,226.06 on light turnover ahead of the country’s earnings season.

The down under dollars were both weaker against the greenback, with the Aussie last off 0.2% at AUD 1.3372 and the Kiwi retreating 0.06% at NZD 1.4301 per $1.