The shares of Nintendo, the Japanese game console maker, plunged nearly 18% on Monday. It registered 17.72% at 23,220 a share, which is almost 29% down from the figure of 32,700 that it registered last Tuesday (July 19th). Last Friday, the company had announced that the impact of ‘Pokemon Go’, the mobile game application that has become wildly popular across the globe, on its consolidated business results, would be limited. The Pokemon Company that developed the app will get a compensation and licensing fee for the collaboration in the making and operations of the game from Niantic, the game-maker. Nintendo holds a 32% stake in the Pokemon Company.
Later part of this week will see Nintendo announcing its earnings. The company has said it will be taking into consideration the development of an accessory for ‘Pokemon Go Plus’ while calculating the forecast. Nintendo actually saw its shares doubling since the release of the game in the US market. However, many experts in the Stock Market are of the opinion that the app will not be able to sustain the present stock levels of Nintendo, despite the popularity of the app, since the number of investors making the bet that the price will fall tripled in just over a week.
Most of the Asian markets, last week, traded modestly. The benchmark indexes in the region saw little movement. Topic registered 2.15 points (0.16% at 1,325.36), and Nikkei 225 registered a closing figure of 16,620.29. Kospi (South Korea) registered 1.98% (0.1% at 2,012.32). Hang Seng index (Hong Kong) registered a down of 0.19%. Most of the Chinese mainland markets closed on a high. Shanghai composite gained about 3.98 points (0.3% to 3,016.80). Shenzhen composite closed flat at 2,019.81.
ASX 200 (Australia) registered 35.41 points (0.64% at 5,533.60). The heavily-weighted financials sub-index saw an increase of 0.55%.
The Japanese yen that fell against the dollar last Thursday saw a revival on Friday. It elevated to the 106 handle. The reason for that could be attributed to the Bank Of Japan Governor, Haruhiko Kuroda’s assurance that they will not be reverting to ‘helicopter money’ to tackle the Japanese inflation. Monday saw the yen trading at 106.10. BOJ’s 2-day monetary policy meeting is scheduled to start on July 28th.
Japan’s export data that is released before the opening of the trade has been better than expected. In terms of volume, it showed an increase of 2.9%.
The shares of Mazda Motor company registered 5.93% at 1571 yen.