Nikkei 225 · October 9, 1998
When the banks themselves failed
-43.18%
peak-to-trough, the whole slide
566 trading days · 1996-06-26 → 1998-10-09
back to the old high on 2017-11-07
What happened that day?
- From the high on 26 June 1996 to the low on 9 October 1998, the Nikkei fell 43.18% over 566 trading days
- November 1997 was the turning point. A major securities house and a bank closed in the same month
- Until then, Japan had believed that large financial institutions do not fail. That belief broke
- The bad loans, postponed for six years, had finally surfaced
- The Asian currency crisis spread at the same time, turning Japanese banks' lending in the region bad as well
- A consumption tax rise in April 1997 had already knocked domestic demand down
- The high it fell from was not regained until November 2017
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.