Nikkei flat as market awaits Fed clues; Nintendo set to surge on gaming move

martes 17 de marzo de 2015 22:40 GYT

* Nintendo, DeNA untraded with buy orders after tie-up news
    * Nintendo-related shares soar on new console hopes
    * FOMC result unlikely to have major long-term impact to
Japan market

    By Ayai Tomisawa
    TOKYO, March 18 (Reuters) - Japan's Nikkei share average was
little changed on Wednesday, with investors reluctant to make
bets before the Federal Reserve's policy decision later in the
day, while Nintendo Co was flooded with buy orders
after it said it will enter the smartphone gaming industry.
    The Nikkei was flat at 19,434.63 points by late
morning after traversing positive and negative territory. It had
 hit a fresh 15-year high of 19,479.89 the previous day.
    Nintendo shares were untraded at 0220 GMT, but looked set to
rise by its daily limit of 21 percent to 17,080 yen as the stock
was flooded with buy orders after it and DeNA Co said
they will jointly develop game applications. 
    CLSA raised Nintendo's rating to 'outperform' from 'sell.' 
    "We regard the alliance as Nintendo's first steps toward its
eventual withdrawal from the dedicated game machine business,"
CLSA wrote in a report.
    DeNA also remained untraded amid a surge in buy orders, and
looked set to rise 21 percent to its daily limit of 1,707 yen.
    Analysts said that investors will likely stay on the
sidelines for the time being while they awaited for the U.S.
Federal Reserve's policy statement later in the day for more
clues on when it will raise interest rates.
    Investors are most interested in whether it will remove the
word "patient" from its remarks on raising rates.
    "People don't want to make large bets now. But at the same
time, in any case, the outcome should not have a serious
long-term impact to the Japanese market," said Takuya Takahashi,
a strategist at Daiwa Securities.
    "The Japanese market has gained mostly on expectations of
its economic recovery and buying by pension funds."
    He also said that Japanese stocks are seen attractive,
trading at a price earnings ratio of 15 times compared to 19
times for the S&P.
    "I had expected that the Nikkei will hit 20,000 after
full-year earnings releases in May, but it may breach the level
even before that on expectations for strong earnings," Takahashi
    Nintendo-related stocks outperformed as the company also
said it is developing new game console "NX". 
    Mitsumi Electric soared 11 percent, Hosiden
 jumped 9.3 percent and Ubiquitous surged 16
    Bank of Kyoto, Nintendo's second-biggest
shareholder, jumped as high as 19 percent.
    The broader Topix gained 0.2 percent to 1,573.84 and
the JPX-Nikkei Index 400 added 0.1 percent to

 (Editing by Kim Coghill)