(Bloomberg) — Shares of Japanese game maker Nintendo Co. plunged the most in seven months, with some investors attributing the drop to global funds pulling out from some of the best performers amid jittery markets.
Most Read from Bloomberg
Nintendo sank as much as 8.4% in Tokyo, its biggest intraday drop since the stock market rout on Aug. 5. The shares had traded at an all-time high last month and jumped 23% this year before Friday’s plunge. About half of Nintendo shares are held by foreign investors, according to the company.
“Global investors are reducing their positions in Japanese stocks, and they now can’t even help selling the most attractive stocks they have so far held on to,” said Ikuo Mitsui, fund manager at Aizawa Securities Co.
Wall Street Goes From Hope to Panic as Nasdaq Nears a Correction
Gaming stocks were among the best spots in otherwise moribund Japanese equity market. The Solactive Japan Games & Animation Index, which includes companies including Nintendo, Sony Group Corp. and Bandai Namco Holdings Inc., had risen 14% this year through Thursday, compared with 1.2% fall in the Topix index.
“Even gaming stocks that have performed well so far this year are now coming under pressure,” said Yasuo Sakuma, president at Libra Investments. “I suspect some investors are being forced to sell those stocks to make up for losses elsewhere.”
Flight From Chip Risks Boosts Japan’s Game Stocks Ahead of Trump
Sony shed as much as 6% in Tokyo, also the largest drop since August, while Konami Group Corp. lost 3.8%. Bandai Namco, the best performer among Japan’s biggest 100 stocks so far this year, was down 2.3%.
Most Read from Bloomberg Businessweek
©2025 Bloomberg L.P.
