WhyItDropped

Nikkei 225 · June 22, 1992

Two months from the bottom

-3.62%

single-day change vs previous close

Part of a longer stretch

When the bad loans surfaced

near the end of it · 1991-03-18 → 1992-08-18, -47.29% over the whole period

What happened that day?

  • On 22 June 1992 the Nikkei 225 fell 3.62%
  • It was two months before the low of the stretch on 18 August
  • Property and shares were falling together. Less collateral means less lending, and less lending pushes prices down again
  • That feedback ran for more than a decade
  • No single trigger can be pinned to this day
  • In this stretch the index was 33.41% 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.