On 19 October 1987, Black Monday occurred, sending stock markets around the world into a crash. The plunge in New York was followed by a sharp decline in the Nikkei average the next day. Program selling was cited as a cause, and the market turmoil spread into a global sell-off in equities.
On 19 October 1987, share prices plunged in New York, triggering a crash in stock markets around the world. The following day, the Nikkei average also fell, and sharp declines spread, particularly across Europe and the United States.
The Dow Jones Industrial Average recorded one of its largest-ever declines that day, falling 22.6%. In Tokyo, the market suffered a substantial day-on-day decline, with the Nikkei recording its largest-ever percentage fall of 14.90%, and the sell-off spread to Europe.
The following day, the Nikkei rebounded sharply, rising ¥2,037.32 and helping bring the global stock-market sell-off toward an end.
Computerized program selling is cited as a cause of the Dow’s sharp decline, with falling share prices creating a vicious cycle in which selling accelerated. The Nikkei’s daily closing level was ¥25,746.56.