On 28 October 2008, the Nikkei 225 temporarily fell below ¥7,000, and its closing price of ¥7,621.92 was near its lowest level since the bubble era.
On 28 October 2008, the Nikkei 225 plunged under the impact of global market anxiety following the collapse of Lehman Brothers, pushing it back toward its lowest level since the bubble era. The Tokyo market had been in the ¥12,000 range on 12 September, but fell sharply by 28 October. The Nikkei 225 extended its decline throughout the day, ultimately closing substantially lower than the previous day.
The backdrop included global financial anxiety, including the collapse of major US financial institutions, a sharp fall in the US dollar in foreign exchange markets, and growing concerns about yen appreciation and deflation. The view spread that the flow of funds throughout the market had stalled and that declining financial intermediation was affecting the real economy as well.
The Nikkei 225's closing price was reported as ¥7,621.92, a substantial decline from its level at the end of the previous year. The October plunge at times brought the index close to a low not seen in approximately 26 years, since October 1982, and had a major impact on investor sentiment.