WhyItDropped

Nikkei 225 · October 11, 2018

When US yields spiked

-3.89%

single-day change vs previous close

Part of a longer stretch

The fourth-quarter selloff

early in it · 2018-10-02 → 2018-12-25, -21.07% over the whole period

What happened that day?

  • On 11 October 2018 the Nikkei 225 fell 3.89%
  • That week the ten-year US Treasury yield reached its highest in seven years
  • The Fed was preparing its fourth hike of the year, and a strong economy left room for more
  • Higher yields reduce the relative appeal of shares, and the names that had risen most fall first
  • US markets had dropped hard the night before, and it came straight over to Asia
  • The slide that began here ran through the fourth quarter, taking more than twenty percent off
  • In this stretch the index was 21.07% 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.