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Monday
Mar142011

Second Biggest One-Day Decline Ever for Japan ETF (EWJ)

Japan's Nikkei-225 was down 6.18% today, and the iShares MSCI ETF that tracks the Japanese market (EWJ) is down even more at 9.07%.  If the ETF were to close at its current level, it would be its second biggest one-day decline since it began trading in the mid-90s.  The biggest decline ever for EWJ came on October 15th, 2008 when it fell 10.41%.

Below is a table showing all one-day declines of 5% or more for EWJ throughout its trading history.  While the circumstances surrounding today's move lower in Japanese equities are unlike the circumstances surrounding any of the other days listed, the ETF has historically bounced back on the following day with an average change of 2.47%.  The ETF moved higher by at least 4% on the day after the prior four biggest one-day declines.  Let's hope we get a repeat pattern this time around as well.

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