Nintendo’s shares plummeted 9.2% in Tokyo, its largest drop since August, as investors sell off Japanese console makers amid concerns about US tariffs driving up prices for consoles. The stock had traded at an all-time high last month and jumped 23% this year before Friday’s plunge.
Analysts warn that the new tariffs could increase the cost of importing games consoles into the US, where they are the largest market, due to higher import costs from China. The Trump administration has raised duties on Chinese imports to 20% from 10%.
Investors are also selling off shares of Japanese console makers amid jittery markets and a retreat by global funds from Japanese stocks. Nintendo’s shares, which are held by foreign buyers, account for about half of the company.
The decline in gaming stocks follows a recent report that raised concerns about the sector’s outlook due to tariff risks. The Solactive Japan Games & Animation Index, which includes companies like Nintendo and Sony, had risen 14% this year through Thursday, compared with a 1.2% fall in the Topix index.
Shares of other Japanese gaming companies also fell on Friday, including Bandai Namco Holdings Inc., Capcom Co., and Konami Group Corp. The decline is attributed to concerns that investors are being forced to sell off stocks to make up for losses elsewhere due to higher tariffs and economic uncertainty.
Source: https://finance.yahoo.com/news/nintendo-shares-plunge-outperforming-gaming-030954968.html