Which stock index fell nearly 46% in Hong Kong during the 1987 Black Monday crisis?

The Hang Seng Index fell nearly 46% in Hong Kong during the 1987 Black Monday crisis.

Hong Kong’s stock market suffered one of the most dramatic declines in the international chain reaction surrounding October 19, 1987. Trading was suspended for several days after the Hang Seng Index plunged, and the index’s loss for that month approached half its value. The shock then moved through other markets, including Australia, Europe, and the United States.

The crisis involved more than a single piece of bad news. Investors faced concerns about expensive shares, interest rates, currency arrangements, international trade, and automated trading strategies. Once prices began falling, selling pressure and uncertainty reinforced each other.

The Hang Seng Index is Hong Kong’s principal equity benchmark and includes major companies listed there. It is distinct from Japan’s Nikkei 225 and Singapore’s Straits Times Index. The enormous Hong Kong decline is one reason Black Monday is remembered as a worldwide market event rather than only an American crash.