WhyItDropped

Nikkei 225 · January 13, 1997

Retraced in three days

+4.71%

single-day change vs previous close

Part of a longer stretch

When the banks themselves failed

early in it · 1996-06-26 → 1998-10-09, -43.18% over the whole period

What happened that day?

  • On 13 January 1997 the Nikkei 225 rose 4.71%
  • It undid the fall from three days earlier
  • The market was swinging on whether a bank rescue would come, on a scale of days
  • A market moving on policy hopes has no settled direction until the policy actually arrives
  • No single trigger can be pinned to this day
  • In this stretch the index was 19.94% below its peak

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.