Nintendo HQ.jpg
Image: Mashable

Yesterday we reported on Nintendo joining the broader Tokyo exchange in seeing a hefty drop in share value, a reaction to the pending confirmation (at the time the Japanese markets closed) of Donald Trump being elected US President. However, as we also reported Western markets shared that initial shock but followed it with "a shrug", hence the "recovery is likely" in our headline.

Just as was the case when similar events occurred following the 'Brexit' vote in the UK, markets and the investors that drive them panicked, then went back to normal; it's all part of the curious sideshow that the stock exchanges make of themselves. As predicted, the same has happened again.

The Japanese market - courtesy of time zones - needed to play catch-up in the shoulder shrugging stakes, and the Nikkei closed up 6.72%, actually gaining on the pre-loss figure. Nintendo's shares followed suit, though have simply returned to the status quo - the value closed on 24,410 Yen, having been 24,420 Yen before the 6%+ loss the day before. Back to square one, in other words.

A perfect V shows the drop then recovery

Some global events can have lasting impacts on companies, if they affect things like shipping and manufacturing in particular, but others lead to very temporary dips. This, like the aforementioned Brexit, fell under the latter category, and in this case rather than need nearly a week to recover, markets needed a matter of hours.

So there you have it, another example of the fickle instability of markets as they panic, then shrug and return to normal.

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[source bloomberg.com, via theguardian.com]