Shares of Japan’s Nintendo Co Ltd (7974.T) and SoftBank Group Corp (9984.T) and Sharp Corp (6753.T) fell steeply on Wednesday, after the companies jolted investors with disappointing results, emphasising the dim demand outlook for global tech firms.
Shares of Nintendo dropped 6% after the maker of the Switch video game console reported lower sales and profit and cut its full-year outlook. It also cut its sales target for the Switch console. Nintendo shares were on track for their biggest one-day loss since November.
SoftBank shares fell 6.2% after it reported a quarterly loss, hit by its massive Vision Fund investment unit, which fell into the red for the fourth straight quarter. The global tech investor also gave a cautious outlook.
Sharp Corp (6753.T) was also hit, tumbling 11.2% and putting it on track for its biggest one-day drop in 3-1/2 years.
The maker of displays and telecoms equipment, a unit of Taiwan’s Foxconn (2317.TW), reported a quarterly operating loss and said it expected a loss for the full year.
The results from the three companies illustrate how tech firms have been squeezed by a downturn in consumer demand driven by rising inflation and interest rates.
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