Nikkei 225 · March 29, 2001
Dot-com Bust Meets Bank Debt
-5.04%
single-day change vs previous close
Part of a longer stretch
Two months on a new prime minister
early in it · 2001-03-13 → 2001-05-07, +22.93% over the whole period
What happened that day?
- 29 March 2001 — Nikkei 225 fell 5.04%, near the fiscal year end
- Japanese banks counted shareholdings toward their capital
- Falling prices reduced bank capital → forced loans to be called → starved companies of funding
- The channel from share prices into the real economy was more direct than elsewhere
- The global tech decline compounded it; Japan's electronics and telecom firms were in the same current
- Fell 23.46% from peak
- This is when the Bank of Japan first introduced a new policy called quantitative easing
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.