Nikkei 225 · January 25, 2008

Three days after the emergency cut

+4.10%

single-day change vs previous close

Part of a longer stretch

Subprime reaches Tokyo

near the end of it · 2007-07-09 → 2008-03-17, -35.45% over the whole period

What happened that day?

25 January 2008 — the Nikkei 225 rose 4.10%. No single cause for that one day could be pinned down
The two sessions before had also risen. This was the last and largest of three up-days
The week before was the problem: Tokyo fell hard on 21 January and again on 22 January
On the night of the 22nd the Fed cut sharply without waiting for its scheduled meeting. An unscheduled cut also reads as a sign of how urgent things were
On the 24th came word that the US administration and Congress had agreed on a stimulus plan. Tokyo took that the next day
This retracement was short too. The next session fell hard again, and the low came in mid-March
From the October 2007 high to the March 2008 low the index fell 32.48%

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.