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[Tripon]

(Reuters) - Shares in Nintendo Co Ltd climbed 3.9 percent to 11,740 yen on Tuesday, with traders citing market expectations that the video game maker will be promoted to the benchmark Nikkei after its annual review.

A decision is expected to be made this week, traders said.

A trader at a foreign bank in Tokyo said investors were also speculating that Japan Exchange Group Inc, formed from the merger of the Tokyo Stock Exchange and the Osaka Securities Exchange in January, would join the Nikkei 225 constituent.

Japan Exchange Group, which has a market capitalisation of about $4.7 billion, advanced 1.4 percent to 8,600 yen, adding to a 9.1 percent rally on Monday.

Nintendo, which has a market capitalisation of $16.3 billion, has risen 29 percent so far this year, slightly underperforming a 33 percent rise in the Nikkei. (Reporting by Dominic Lau; Editing by Stephen Coates)

http://www.reuters.com/article/2013...feedType=RSS&feedName=financialsSector&rpc=43

With this, and Japan's expectant sales tax hike expecting to further weakening the Yen, Nintendo and other Japanese companies who rely on exports will have an easier time to turn a profit.

 

[FZZ]

So this is a good thing?

What effect does this have on their forecast for their FY profit of 100 billion yen?

 

[TheXfactor]

they make even more money from exports?

 

[KillerTravis]

Surprising after the supposed decline when they announced the Wii U price cut and 2DS on western territories.

 

[w1gglyjones]

What effect does this have on their forecast for their FY profit of 100 billion yen?

None. And it's 100 bn yen OPERATING profit

 

[FZZ]

None. And it's 100 bn yen OPERATING profit

I see.

So they still barely have a chance of hitting their target?

 

[KingJ2002]

this is more of a circumstantial gain than anything else. it doesn't really help them meeting their forecasted goals... but it doesn't hurt either

 

[w1gglyjones]

I see.

So they still barely have a chance of hitting their target?

Yes. Decent chance.

 

[Tripon]

I see.

So they still barely have a chance of hitting their target?

If its operating profit, I don't see how they can. They still have the aftermath of the move to the new HQ, and they don't have any large physical assets they can sell in order to acquire quick revenue.

BTW, Sony(games division) is going to probably be turning a operational loss this year as well. Making, marketing, and selling game consoles is expensive.