Nikkei 225 · January 31, 1994
Stimulus hopes in Tokyo
+7.84%
single-day change vs previous close
Part of a longer stretch
A bounce on reform hopes
early in it · 1993-11-29 → 1994-06-13, +34.05% over the whole period
What happened that day?
- On 31 January 1994 the Nikkei 225 rose 7.84% in a single day
- It was the fourth year after the bubble and the economy kept getting worse
- Reports that the government was preparing a large stimulus package including tax cuts produced the jump
- Banks carrying bad loans could not expand lending, so cutting rates was not getting money moving
- That put the hope on fiscal policy — the government spending directly
- Packages did come, but the effects did not last. This cycle repeating is what the lost decades looked like
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.