Tokyo stocks down by break after six-day rally

Tokyo - Tokyo shares headed for their first loss on Wednesday after a six-day winning streak, while Nintendo's Pokemon Go rally fizzled just as the hugely popular smartphone game prepares to launch in Japan.

Nintendo fell nearly 13% ¥27 650 in the morning, just a day after the videogame giant shot past Sony in market value.

Nintendo stock more than doubled since Pokemon Go's release this month sparked a global frenzy, and boosted hopes for the company's nascent move into mobile gaming.

Reports have said the game's launch in home market Japan could come as early as Wednesday or Thursday, having been released in more than two dozen countries by the weekend.

Nintendo and the Pokemon Company declined to comment, while US-based Niantic - which developed the game - has not replied to requests for comment.

Forbes has cited Niantic chief executive John Hanke as saying the reason for the delay is that Japan's server capacity is not powerful enough to keep up with expected demand.

At the lunch break in Tokyo, the benchmark Nikkei 225 index dipped 120.41 points, to 16 602.90, having jumped more than 10% in the previous six trading days.

The broader Topix index of all first-section shares fell 8.39 points, to 1 323.00.

"Considering there aren't any real catalysts for share moves and that the Nikkei 225 has risen far above its 25-day moving average, the market needs a breather," Chihiro Ohta, a senior strategist at SMBC Nikko Securities, told Bloomberg News.

"Nintendo shares need a break, too. If Pokemon Go is released in Japan today, investors are going to want to watch how things go from here."

Exporters slumped with Sony dipping 0.37% to ¥3 224 and Panasonic falling 0.57% to ¥989.9.

Toyota was down 0.35% at ¥5 764, while messaging app Line, which made its trading debut in Tokyo on Friday, jumped 2.13% to ¥4 075.

Banking giant Mitsubishi UFJ dropped 2.05% to ¥510.9.

McDonald's Japan surged more than nine percent to ¥3 490 on news it will sponsor Pokemon Go in Japan, according to the Wall Street Journal.

In forex trade, the dollar eased to ¥105.99 in Tokyo, from ¥106.08 in New York on Tuesday.