Nikkei 225 · November 27, 1997
At the end of the week it broke
+3.48%
single-day change vs previous close
Part of a longer stretch
When the banks themselves failed
midway through · 1996-06-26 → 1998-10-09, -43.18% over the whole period
What happened that day?
- The Nikkei 225 rose 3.48% on the day
- It followed a month in which a large bank and two brokerages had failed in turn — the month the assumption that big Japanese financial firms do not fail broke
- The gain came on word that the government was considering putting public money into financial institutions
- The money did not actually go in until the autumn of the following year. Through that year the market kept sliding
- Japan's problem was always the time taken to admit things. Recognising the losses meant closing banks, so it was deferred
- While it was deferred the banks could not make new loans, and the recovery was deferred with them
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.