WhyItDropped

Nikkei 225 · May 23, 2013

The Shock After the Abenomics Rally

-7.32%

single-day change vs previous close

Part of a longer stretch

Abenomics' first crash

early in it · 2013-05-22 → 2013-06-13, -20.36% over the whole period

What happened that day?

  • 23 May 2013 — Nikkei 225 fell 7.32%, after climbing for nearly six months with almost no correction
  • Two things sat behind it: the US Fed signalling it might reduce asset purchases, and weak Chinese manufacturing data
  • The deeper factor was the speed of the rise itself
  • A market lifted that far, that fast, on expectations of easing alone will swing hard on small shocks
  • Because earnings need time to catch up with the price
  • Fell 20.36% from peak. The market then resumed its advance

Sources

Every figure on this page is recomputed from the original daily closing prices and checked against them at build time. The account of what happened is written from the sources listed above.