Asia Markets Lose Steam; Samsung Files Countersuit Against Huawei

Legal wranglings between South Korea's Samsung and China's Huawei continue sending both stocks down.
By Lisa Botter ,

Markets in Asia were a sea of red on Friday, with every major benchmark index closing down.

A Nikkei Manufacturing PMI reading released today showed the Japanese manufacturing declined in July, albeit at a slower rate.

The "flash" reading from Nikkei and MarkIt, which comprises about 85% of responses, was 49 in July, compared with the 48.1 final reading for June. Economists were expecting a reading of 48.3.

This is still below the 50-point threshold that demarks contraction from growth. Markit economist Any Brownbill said, "International demand fell at the sharpest rate in over three-and-a-half years, with many panellists blaming the appreciation of the yen leading to a reduction in global competitiveness."

The Nikkei lost 1.09% on Friday to rest at 16,627.25 in Tokyo and the Topix was down 0.89% at 1,327.51.

Nintendo (NTDOY) surged again today after its ultra-popular augmented reality game Pokemon Go was released in Japan. Shares were up as much as 8% this morning, after falling for a couple of days due to a delay in the Japanese release of the game. Gains were pared during trading on Friday to end the day at 0.79% up.

Despite the recent choppiness, Nintendo shares have gained 73% since Pokemon Go had its initial limited release two weeks ago.

The Pokemon Go effect was also felt by McDonald's (MCD) - Get Report Japanese Unit. Shares in the Japanese business called McDonald's Holdings surged as much as 10% this morning after McDonald's it would "collaborate" with Pokemon Go. People familiar with the deal told The Wall Street Journal that McDonald's outlets would be used as "PokeStops" and "Gyms".

Shares ended the day 4.17% up. McDonald's Holdings is now at its highest level in five years.

Construction machinery maker Komatsu had a choppy day in Tokyo as investors reacted to its $3.7 billion of its U.S. rival Joy Global. Komatsu's U.S. subsidiary will buy all of Joy Global's outstanding shares for $28.30 each, which was a 20% premium on the share's Wednesday close price.

Shares gained 3.5% before paring gains to end the week 0.7% down.

In Hong Kong, the Hang Seng was down 0.30% to 21,935.08.

On mainland China, the CSI 300 lost 0.87%.

In Beijing Samsung Electronics today filed a countersuit again China's Huawei Technologies making allegations of infringement of its mobile technology patents. Huawei, a smartphone maker, sued Samsung in May for alleged infringement of intellectual property.

Huawei shares lost 1.95% today. Samsung's shares lost 1.8% in Seoul.

In Seoul, the Kospi was down 0.09% at 2,010.34.

The West Texas Intermediate had recently lost 0.92% to $44.34 and Brent Crude was down 0.54% to $45.95 a barrel.

Dow Jones Industrial Average mini futures were recently 0.02% up and S&P 500 mini futures had lost 0.01%.

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