WhyItDropped

Nikkei 225 · May 15, 1996

A month from the top of the rebound

+3.54%

single-day change vs previous close

Part of a longer stretch

The year the rescue bought

near the end of it · 1995-07-03 → 1996-06-26, +56.48% over the whole period

What happened that day?

  • On 15 May 1996 the Nikkei 225 rose 3.54%
  • The top of this rebound came a month later, on 26 June, at 22,667
  • Against the 1989 peak of 38,915 that is about sixty percent. Six years to get that far
  • The Japanese economy really was recovering. Growth that year came in respectably for the first time in a while
  • Which is why the government decided to raise the consumption tax the following year. That decision cut the recovery off
  • No single trigger can be pinned to this day
  • In this stretch the index was 9.76% below its peak

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.