20 de julio de 2016 / 2:37 / hace un año

Nikkei falls for 1st time in 7 days, Nintendo slides

* Nintendo shares fall 10 pct after sharp jump in value

* McDonald’s soars on report it will be Pokemon GO’s sponsor

* Cyclical stocks underperform

* Up-down ratio signals market still not overbought

By Ayai Tomisawa

TOKYO, July 20 (Reuters) - Japan’s Nikkei share average dropped for the first time in seven days on Wednesday morning as Wall Street pulled back, hitting sentiment and triggering profit-taking from the recent gains.

Nintendo Co fell 10 percent in early trade after the stock more than doubled in value over the past seven sessions powered by the record-breaking success of the Pokemon GO mobile game.

Also under the spotlight was McDonald’s Holdings Company Japan, which jumped 12.5 percent after TechCrunch reported the fast-food chain operator would become the game’s first sponsor. TechCrunch said the sponsorship will see McDonald’s 3,000-plus fast food restaurants across Japan become “gyms”, or battlegrounds, for Pokemon collectors.

The Nikkei dropped 0.7 percent to 16,608.32 in mid-morning trade, after rising 10.7 percent in the past six days.

“Although the market is taking a break from a long rally amid a lack of fresh catalysts to buy, investors may chase the market higher depending on central bank events next week,” said Takuya Takahashi, a strategist at Daiwa Securities.

He added that some technical indicators suggest that the market is still not overbought.

The toraku ratio, or up-down ratio, stood at 119.53 as of Wednesday. A level above 120 signals an overbought market. The ratio is calculated by dividing the 25-day moving average of stocks on the Tokyo Stock Exchange’s first section that gained by the 25-day average of those that fell.

Cyclical stocks such as exporters and financials underperformed. Toyota Motor Corp shed 0.7 percent and Honda Motor Co dropped 1.6 percent.

Mitsubishi UFJ Financial Group felling 2.5 percent and Nomura Holdings slid 3.3 percent.

The broader Topix dropped 0.6 percent to 1,323.20 and the JPX-Nikkei Index 400 shed 0.5 percent to 11,883.62. (Editing by Jacqueline Wong)

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