WhyItDropped

Nikkei 225 · August 5, 2011

The week America was downgraded

-3.72%

single-day change vs previous close

Part of a longer stretch

Europe again, and a record yen

early in it · 2011-07-08 → 2011-11-25, -19.51% over the whole period

What happened that day?

  • On 5 August 2011 the Nikkei 225 fell 3.72%
  • That night the United States lost its top credit rating for the first time in history
  • In the same week Italian and Spanish bond yields spiked and Europe's crisis deepened
  • When the asset everyone treats as safest is shaken, the yardstick for every other calculation shakes with it
  • Money reducing risk crowded into the yen, which returned to record strength
  • For Japan, the flight to safety is itself the damage
  • In this stretch the index was 19.51% 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.