Nintendo’s stock price plunges amid US recession fears
Nintendo’s stock price fell more than 15% on Monday morning amid global concerns about a recession in the United States and rising tensions in the Middle East.
As highlighted by Dr. Serkan TotoAlmost every major Japanese game company saw its share price fall as Japan’s Nikkei fell more than 12%, its biggest drop since the so-called ‘The Fall of Black Monday’ of 1987.
At the time of writing, Nintendo’s stock price was 6,607 yen, down sharply from 7,915 yen last Friday. Meanwhile, Capcom has fallen more than 16% and is now valued at 2,356 yen, while Sega has fallen more than 13% to 1,884 yen.
When asked about the reason behind the drop, Toto simply said that “rich people mostly act on emotions, so sometimes there is not much reason.” However, it seems that global investors are in a state of complete panic after the release of weak US jobs data that sparked fears of a recession. As pointed out by Guard“A recession in the United States would hurt economies around the world.”
In London, the FTSE 100 opened about 2.3% lower on Monday morning, while the Euronext 100 opened about 3.5% lower. Meanwhile, stock markets in Taiwan, South Korea, India, Australia and Hong Kong all suffered similar losses.
It has also been reported by BBC that since the Bank of Japan raised interest rates last week, this has made it more difficult for foreign investors to buy stocks, thus further exacerbating the overall decline in the stock market.
