Nintendo shares rise after approving Tencent to sell Switch in China
Nintendo shares rose 13 percent on Friday in Tokyo, a day after China's Tencent won approval to begin selling the Japanese company's console switch to China's biggest market. video games of the world.
It is the largest percentage increase since July 2016, when enthusiasm for the hit game for Pokemon Go phones took off from Nintendo's actions. The jump on Friday has seen newspapers peaking at their highest level since October and has pushed stocks up 32 percent so far this year.
Nintendo's shares traded in the United States grew 12 percent after Chinese province Guangdong approved that Tencent would distribute Switch's console with a trial version of the game "New Super Mario Bros. U Deluxe."
The Kyoto-based game developer faced obstacles by Japanese standards and a search for a partner to bring its Hybrid Switch console to China, which slowed the development of console games there.
Nintendo's shares suffered a sell-off late last year due to concerns about the weakness of its games for Switch. Reports that say that Nintendo will launch a low-cost Switch version have helped bolster confidence in recent weeks.
It is not yet clear when the console in China could go on sale, and the games will require an independent approval process.
China's video game industry leader Tencent is trying to recover from a long pause in video game approval in China last year.