Nikkei 225 · May 10, 2004
The spring China was said to be tightening
-4.84%
single-day change vs previous close
Part of a longer stretch
Four years off the bottom
early in it · 2003-04-28 → 2007-07-09, +140.04% over the whole period
What happened that day?
- The Nikkei fell 4.84% to close at 10,884.70. No single trigger for the day could be pinned down
- Two things worried the market in the spring of 2004: China curbing lending to cool an overheating economy, and America starting to raise rates
- For Japanese companies, China was the fastest-growing customer. When it cools, earnings forecasts are cut first
- This market had climbed steeply over the preceding months. From a high base, retracements are large
- The correction ran 13.64% from the late-April high to the mid-May low
- The episode was short, and the market rose again later that year
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 put together from the public record; where a specific source was consulted it is listed above.