WhyItDropped

Nikkei 225 · November 13, 1987

After Black Monday, Tokyo got up first

+4.19%

single-day change vs previous close

Part of a longer stretch

Tokyo's fast recovery from Black Monday

early in it · 1987-11-11 → 1988-04-07, +27.25% over the whole period

What happened that day?

  • The Nikkei rose 4.19% on the day — the second-largest single gain of this recovery
  • **No single cause for that day has been pinned down.** What is established is that it sat at the start of a five-month recovery
  • Three weeks earlier, on Black Monday, Tokyo had fallen by its largest single-day margin on record. It was also the market that came back fastest anywhere
  • The reason was money. Japan was awash in domestic funds that went straight back into shares that had just got cheaper
  • This recovery ran on into the final stretch of the late-1980s bubble. The Nikkei reached its all-time high two years later
  • This stretch ran to the following April

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.