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Nintendo stock leaps 8% as Yen weakens, US job market improves

Nintendo stock leaps 8% as Yen weakens, US job market improves

Fri 08 Mar 2013 9:12am GMT / 4:12am EST / 1:12am PST
Financial

Combination of fiscal upturns pushes corp's shares to 10,330 Yen

Nintendo's stock has jumped by eight per cent to 10,330 Yen after a combination of a weakening Yen and an improving US job market produced windfalls for many exporters on the Tokyo Stock Exchange.

It was the second day of consistent growth for the company, although today's upswing was much more marked. 39 per cent of Nintendo's sales are from the US, meaning that US equity gauge improvements and a six-week low in US unemployment have added to the impact of currency market shifts.

Many Japanese companies which export a large percentage of their products have felt the impact of a comparatively strong Yen in recent years, with Sony citing it as a major reason behind it losing ground in several key business to Korean companies. With the Yen now losing some of its value, profits gathered abroad are now more valuable to Japanese organisations.

Many Japanese stocks saw the benefits of the boost, but most were not of the same scale as Nintendo's. Sony, for example saw a rise of 0.9 per cent to 1,464 Yen, but has experienced a more consistent rise in value over the last couple of months in anticipation of and as a response to the announcement of the PlayStation 4. Namco Bandai, Capcom and Konami also all saw prices rise.

1 Comment

Daniel Hughes Studying PhD Literary Modernism, Bangor University

436 496 1.1
Recent months would have been a good time to buy Nintendo stock, I think. While the stock may dip around the time of their financial results--perhaps Wii U will miss even the revised estimations--I think in twelve months time Nintendo's stock will be a fair bit higher. Obviously not a return to DS/Wii over-rated stock, but a better showing than they've had for a couple of years isn't out the question. Hardware launches are out the way, a killer global line up for 3DS is confirmed, and the Wii U has plenty of big software being spoken about but not yet demonstrated or given release dates. Across both systems Nintendo's slate in the coming year should be huge, and their financials will respond accordingly. Just a shame that particularly with Wii U, they seemed to write this financial year off.

Posted:A year ago

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