Nintendo shares have surged after its Pokemon GO smartphone game shot to the top of Apple's free app chart following its release this week.

Investors cheered signs that the Japanese giant's long-awaited shift into mobile gaming was paying off, sending the stock 9% higher.

Nintendo had for many years resisted introducing products with its best-known characters such as Super Mario Bros and Pokemon as it sought to protect its games console business.

But Wednesday's launch of Pokemon GO in the US saw the title soar to number one free app in Apple's US iTunes store. It was also launched in Australia and New Zealand this week and is expected to be rolled out in Japan soon.

Reviewers were broadly positive about the game but pointed to technical glitches.


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While the game is free, it makes money by offering users in-app purchases for power-ups and extra items.

Analysts at Macquarie Securities in Australia said: "It has more (monetisation) than we expected."

Nintendo has promised four more smartphone games in the financial year to the end of March and has said it expects mobile gaming to help boost annual operating profit by a third to 45bn yen (£350m).

It also plans to release its next console worldwide in March 2017.

A Tokyo-based UK asset management firm fund manager told Reuters: "The company has huge intangible assets like characters but it hasn't been trying to use them seriously. But the success of its Pokemon GO shows the company has got great content."