WhyItDropped

Nikkei 225 · December 20, 1993

When the hope started to wobble

-3.59%

single-day change vs previous close

Part of a longer stretch

A bounce on reform hopes

early in it · 1993-11-29 → 1994-06-13, +34.05% over the whole period

What happened that day?

  • On 20 December 1993 the Nikkei 225 fell 3.59%
  • The coalition's reform bills were struggling in parliament
  • A government made of several parties takes time to agree, and that time reads as uncertainty
  • A price built on expectation falls when the expectation is merely delayed
  • No single trigger can be pinned to this day
  • In this stretch the index was 23.97% 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.