Tokyo stocks fell Friday as energy firms were hit by an OPEC decision not to cut output more to buoy oil prices, but videogame giant Nintendo hit an eight-year high on rosy sales prospects. Investors were disappointed that the Organization of the Petroleum Exporting Countries decided not to prolong existing production cuts past March, which sent crude futures plunging almost five percent on Thursday.
"Clearly what was announced has not been enough," David de Garis, director of economics at National Australia Bank, said in a commentary. A probe into possible collusion between US President Donald Trump's campaign and Russia in the November election was also "deterring Japanese shares from moving higher", Okasan Online Securities said in a commentary. Tokyo's benchmark Nikkei 225 index closed 0.64 percent, or 126.29 points, lower at 19,686.84. It ticked up 0.49 percent over the week.
The broader Topix index of all first-section issues fell 0.57 percent, or 9.00 points, to end the session at 1,569.42. It rose 0.62 percent from last Friday. Markets seemed little moved by data showing Japan's inflation rose again in April largely due to higher energy costs. Next week, the government releases data on household spending and factory output while investors are also watching a series of US indicators including key jobs figures.
On Friday, Nintendo shot up 5.47 percent to 33,510 yen, the highest close since January 2009, after analysts at Morgan Stanley MUFG raised its annual sales projections for the firm's new Switch console.
Oil explorer Inpex dropped 1.99 percent to 1,030.5 yen and petroleum refiner Idemitsu lost 1.22 percent to end the day at 3,225 yen. Toyota fell 0.73 percent to 5,941 yen and bank Mitsubishi UFJ slipped 0.89 percent to 695.2 yen. Nissan ended 0.50 percent lower at 1,076 yen as Bloomberg News reported that GSR Capital, a Chinese private equity firm with backing from the Hubei provincial government, is nearing a deal to acquire control of the Japanese automaker's rechargeable battery unit for about $1.0 billion. Sharp edged up 0.24 percent to 415 yen. After markets closed, it announced it would swing into the black this year, forecasting a 59 billion yen net profit. The dollar weakened to 111.41 yen from 111.85 yen in New York.
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