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Japan Stock Market
Japan Stock Market
The Tokyo Stock Exchange was established in 1878. In 1943, during the Second World War, the Japanese
government combined the TSE with five others to form a single Japanese Stock Exchange. That exchange
was closed down in August 1945 toward the end of the war. The Tokyo Stock Exchange re-opened on
May 16, 1949, under the aegis of the new Securities Exchange Act.
Japan experienced a major asset bubble in the late 1980s when the government used fiscal and
monetary stimuli to counteract a recession caused by the Japanese yen's 50% appreciation during the
first part of the decade. According to TraderHQ, stock prices and land values tripled between 1985 and
1989; at the height of the bubble, the TSE accounted for 60% of global stock market capitalization.
The bubble burst in 1990, and the value of the Nikkei Index fell by one-third that year. According to
Seeking Alpha, in October 2008, the Nikkei traded below 7,000; this was a decline of more than 80%
from its December 1989 high. It subsequently rebounded between June 2012 and June 2015 with the
help of economic stimulus from the Japanese government and the Bank of Japan, but the Index was still
nearly 50% below the 1989 high.
https://www.investopedia.com/terms/n/nikkei.asp
The Japan NIKKEI 225 Stock Market Index reached an all time high of 38957.44 in December of 1989.
the Japan NIKKEI 225 Stock Market Index reached a record low of 1020.49 in July of 1965.