Nikkei 225 · October 22, 1986
The endaka slump
-16.46%
peak-to-trough, the whole slide
44 trading days · 1986-08-20 → 1986-10-22
back to the old high on 1987-01-06
What happened that day?
- From the 20 August 1986 peak to the 22 October low the Nikkei 225 fell 16.46% — 44 trading days
- After the major countries agreed in 1985 to push the dollar down, the yen nearly doubled in value within a year
- A dearer yen means the same sale brings back fewer yen. Exporter profits get cut directly
- Cars and electronics — the industries holding up the Japanese economy — took it head on
- The Bank of Japan cut rates sharply to support the economy and the market turned
- The old high returned on 6 January 1987 — and the low rates set here became the cause of the bubble that followed
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.