WhyItDropped

Nikkei 225 · April 9, 2001

Just before the leadership changed

-4.05%

single-day change vs previous close

Part of a longer stretch

Two months on a new prime minister

midway through · 2001-03-13 → 2001-05-07, +22.93% over the whole period

What happened that day?

  • On 9 April 2001 the Nikkei 225 fell 4.05%
  • The ruling party was in the middle of choosing a new leader, who would become prime minister
  • How the bad loans would be handled depended on who won
  • When politics is unsettled, policy is unsettled, and until then there is nothing to price against
  • No single trigger can be pinned to this day
  • In this stretch the index was 23.66% below its peak
  • Two weeks later a reform candidate won and the index rose sharply

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.