Nikkei 225 · October 28, 1997
The day after Hong Kong broke
-4.26%
single-day change vs previous close
Part of a longer stretch
When the banks themselves failed
midway through · 1996-06-26 → 1998-10-09, -43.18% over the whole period
What happened that day?
- On 28 October 1997 the Nikkei 225 fell 4.26%
- Hong Kong's market had collapsed the day before, taking the currency crisis beyond Asia
- US stocks fell so fast that night that trading was halted twice — the first time the post-Black-Monday rules had ever fired
- Hong Kong mattered because it was defending a currency pegged to the dollar. Defending it means raising rates, and raising rates breaks the stock market
- Japan was exposed on both sides: as a creditor to the region and as its neighbour
- In this stretch the index was 28.83% below its peak
- It bounced back the very next day
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.