WhyItDropped

Nikkei 225 · November 18, 1992

The autumn the package worked

+4.91%

single-day change vs previous close

Part of a longer stretch

The rally the stimulus bought

early in it · 1992-08-18 → 1993-09-13, +47.79% over the whole period

What happened that day?

  • On 18 November 1992 the Nikkei 225 rose 4.91%
  • The index had been recovering since the August package
  • The Bank of Japan was also still cutting, in a series that had begun in 1991
  • Loose money and public spending lift prices in the short run. The problem was that it did not hold
  • This rise ran to September the following year and ended up 47.79%
  • No single trigger can be pinned to this day
  • In this stretch the index was 15.42% 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.