Decline Patterns of Stock Prices by Disasters — Case Study of May 2019

Abstract

We shall measure the US-China trade friction impact in May 2019 on Japanese and US companies’ stock prices. When the President’ remark issued, the stock prices decreased. The decline patterns are in general dependent on the industry fields. We shall find a difference of decline patterns of the stock price movement. The data used are one of Japanese companies that have a lot of transactions with Chinese companies. They are machinery manufacturing companies (B2B transaction ones) and necessities selling companies (B2C ones) such as baby items, cosmetics, and clothing. We traced the time series data changes visually by our developed disaster impact graphs and finally found the pattern difference between the two fields. The machinery manufacturers’ stock prices clearly fall and keep low. The necessities makers’ pattern shows fluctuating declines.