WhyItDropped

Nikkei 225 · September 7, 1998

A bounce off an oversold market

+5.32%

single-day change vs previous close

Part of a longer stretch

When the banks themselves failed

near the end of it · 1996-06-26 → 1998-10-09, -43.18% over the whole period

What happened that day?

  • On 7 September 1998 the Nikkei 225 rose 5.32%
  • It came after a August spent falling on the Russia shock, with the index at a twelve-year low
  • A market that has fallen far bounces far, and this was one of those days
  • Talk of US rate cuts was also circulating, and a cut did come at the end of that month
  • No single trigger can be pinned to this day
  • In this stretch the index was 23.02% below its peak
  • The real bottom was still a month away

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.