Nikkei 225 · June 13, 2006
The June the world fell together
-4.14%
single-day change vs previous close
Part of a longer stretch
Four years off the bottom
near the end of it · 2003-04-28 → 2007-07-09, +140.04% over the whole period
What happened that day?
- The Nikkei 225 fell 4.14% on the day
- A high US inflation reading raised expectations that central banks everywhere would keep raising rates
- What had risen most over the preceding years were emerging-market shares and commodities — money had been cheap and had crowded into risk
- Rising rates reverse that flow. Emerging markets fell hard first in this period and Japan slid with them
- Japan was itself preparing to raise rates, ending a long stretch at zero, so a domestic factor overlapped
- The correction lasted two months, and the advance itself ran on to July 2007
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.