Nikkei 225 · July 3, 1995
The Kobe quake and a record yen
-32.79%
peak-to-trough, the whole slide
262 trading days · 1994-06-13 → 1995-07-03
back to the old high on 1996-04-01
What happened that day?
- From the high on 13 June 1994 to the low on 3 July 1995, the Nikkei fell 32.79% over 262 trading days
- In January 1995 a major earthquake struck Kobe. More than six thousand people died and the port and factories were destroyed
- Traders reasoned that Japanese money would come home to pay for rebuilding, and the yen surged
- By April it reached the seventy-nine per dollar area — the strongest it had ever been at the time
- A dearer yen destroys the profits of companies surviving on exports. That is where the index broke
- Financial firms began failing that summer, and the bad-loan problem finally surfaced
- This one recovered in April 1996
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.