Nikkei 225 · January 6, 1987
The Bank of Japan easing rally
+19.70%
trough back to the old high
47 trading days · 1986-10-22 → 1987-01-06
this undid the slide that began 1986-08-20
What happened that day?
- From the 22 October 1986 low to 6 January 1987 the Nikkei 225 rose 19.7% — 47 trading days
- It undid the endaka slump decline
- The Bank of Japan cut rates to record lows to revive the economy
- Cheap borrowing followed, but the money went into land and shares rather than into plant and equipment
- Companies finding exports hard also put spare cash into financial investments, pushing the market up further
- The old high returned on 6 January 1987. The advance that starts here runs to the end of 1989 and becomes the bubble
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.