Nikkei 225 · August 6, 2024
The day after the yen carry unwind
+10.23%
single-day change vs previous close
Part of a longer stretch
From the carry unwind to tariffs
early in it · 2024-07-11 → 2025-04-07, -26.26% over the whole period
What happened that day?
- On 6 August 2024 the Nikkei 225 rose 10.23% in a single day
- The day before, 5 August, had been one of the worst falls in the index's history
- It started with a Bank of Japan rate rise. Enormous positions had built up borrowing cheap yen to buy assets elsewhere — the carry trade
- When the yen suddenly strengthened, repaying those borrowed yen got expensive, and investors sold assets to buy yen back all at once
- As the unwinding ran its course the market snapped back the next day. It helped that the BOJ said it would not raise rates further while markets were unstable
- After two days of falling hard and rising hard, the index ended up close to where it started
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.