During the last few hours, the stock market of Japan has registered its worst drop in decades. According to details, Nikkei 225, the main stock index of the Japanese market, plummeted and lost 4451 points, closing with a drop of more than 12%.
This represents its worst drop since 1987 and, as expected, there was a domino effect in various markets in Asia and other continents. This has generated a crisis compared to the infamous Black Monday of that year, when global markets collapsed.
As a consequence of the fall of Japan's stock market, various industries have suffered repercussions. The video game market is no exception, as companies like Nintendo, Sony, SEGA, and Capcom were impacted.
What happened to Japan's stock market?
According to experts, Japan's stock market crash was caused by various reasons, including concerns about a possible economic slowdown in the United States, which impacted various regions.
The fear of a possible recession was combined with a move by the Bank of Japan, which increased interest rates and reduced bond purchases. This impacted carry trade operations, a strategy used to invest in a currency with low interest rates and generate assets with higher returns in another currency.
Furthermore, another reason for the crash is related to uncertainty in the tech sector, where major companies in Asia and other regions are going through tough times. All this created a ripple effect that impacted stock markets in Asia, Europe, and the United States. The video game industry did not escape the crash, as major companies saw their stock values drop.
Nintendo and more companies suffer due to the new Black Monday
Of course, this situation has not gone unnoticed by video game industry analysts. Serkan Toto, from Kantan Games, revealed that various Asian companies have suffered significantly due to the historic crash of Japan's stock market.
Among the most affected companies are Nintendo, Capcom, Cave, Sony, Square Enix, Koei Tecmo, Konami, SEGA, Nexon, and others. Regarding other regions, we know that companies like Microsoft, Nvidia, Meta, and more tech companies have also suffered for the same reasons.
The impact was more pronounced in Japan, but it is not ruled out that other video game studios around the world will suffer declines in their stock values in the coming hours.
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