Sega, Capcom, Nintendo and other game companies’ share values bounce back after Monday Tokyo Stock Exchange plummet 

Yesterday, around 92 game and anime-related Japanese companies listed on the Tokyo Stock Exchange saw their stock values plummet (Related article). However, this morning saw the market bounce back dramatically, with 90 game-related companies seeing their share price rise and only 2 companies (IG Port and coly) seeing their prices decrease further (source: Gamebiz).  

On August 5, the Tokyo Stock Exchange experienced its largest fall since the “Black Monday” stock market crash of October 1987. However, the very next day, this was followed by its largest rise on record. Of all the internationally known game-related companies that were affected, some saw especially high share price increases. Sanrio, of Hello Kitty fame, saw their value increase by 16.48% after a 6% drop the previous day. Sega Sammy Holdings’ share price fell by 13.62% on Monday, but then rose by 13.33% today, almost completely returning to their pre-Monday value. Other companies including Capcom (+15.43%), Bushiroad (+15.38%), Nintendo (+13.56%) and Cave (+18.5%) saw increases, bringing them close to pre-Monday prices. 

Investors’ mass selling off on Monday was likely fueled by concerns about the US economy and the yen appreciating in value against the dollar by more than had been expected. However, according to Nikkei Asia, the release of strong data from the US service sector during the night provided reassurance to investors that the US is not heading into a recession- hence the rebound. The Tokyo Stock Exchange is expected to undergo more volatile changes in the coming months- as more data related to the US and Japanese economies becomes available.