On the 22nd, the Nikkei Stock Average on the Tokyo stock market reached a historic milestone, hitting a new all-time high set in December 1989.
35 years ago was the height of the bubble economy.
"Japan money" was dominating the market, with stock prices and land prices soaring, and Japanese companies acquiring prestigious American companies.
What was Japan like at that time?
Let's look back at the main events.
table of contents
- 1989 (Heisei 1) -
[February 13th] Recruit Incident Founders Arrested
[April 1st] “Consumption tax” starts
[April 21st] Nintendo “Game Boy” released
[May 2nd] Market capitalization of companies listed on the First Section of the Tokyo Stock Exchange exceeds 500 trillion yen
[May 31st] Bank of Japan raises official discount rate
[June 4th] Tiananmen Incident in China
[June 24th] Hibari Misora passed away
[August 3rd] College enrollment rate for girls exceeds that for boys
[August 25] First female Chief Cabinet Secretary appointed
[September 22nd] Yokozuna Chiyo sets record for most wins at Fuji
[September 27th] Sony agrees to acquire US film company “Columbia”
[September 27] “Yokohama Bay Bridge” opens
[November 9th] Fall of the Berlin Wall
[November 21st] Rengo (Japan Federation of Labor Unions) launched
[December 29th] Nikkei Stock Average 38,915 yen, all-time high (closing price)
- 1990 (Heisei 2) -
[January 7th] "Chibi Maruko-chan" broadcast starts
[January 13th] 1st National Center Test for University Entrance Examinations
[February 14th] The Rolling Stones' first performance in Japan starts
[March 27] “Regulations on the total amount of real estate loans” issued by the Ministry of Finance
[March 31st] International Flower and Greenery Expo opens
[April 1st] Merger of Taiyo Kobe and Mitsui city banks
[May 29] Tokyo's land white paper: “Condominiums are 11 times the average annual income”
[August 2] Iraq invades Kuwait
[October 3rd] East and West Germany unify, the beginning of the post-Cold War era
[October 6th] Sega “Game Gear” released
[November 12] His Majesty the Emperor's "Enthronement Ceremony"
[November 21st] Nintendo “Super Famicom” released
[December 2nd] First Japanese space flight
[December 23rd] Oguri Cap Arima Kinen and the final beauty
Open table of contents
table of contents
table of contents
- 1989 (Heisei 1) -
[February 13th] Recruit Incident Founders Arrested
[April 1st] “Consumption tax” starts
[April 21st] Nintendo “Game Boy” released
[May 2nd] Market capitalization of companies listed on the First Section of the Tokyo Stock Exchange exceeds 500 trillion yen
[May 31st] Bank of Japan raises official discount rate
[June 4th] Tiananmen Incident in China
[June 24th] Hibari Misora passed away
[August 3rd] College enrollment rate for girls exceeds that for boys
[August 25] First female Chief Cabinet Secretary appointed
[September 22nd] Yokozuna Chiyo sets record for most wins at Fuji
[September 27th] Sony agrees to acquire US film company “Columbia”
[September 27] “Yokohama Bay Bridge” opens
[November 9th] Fall of the Berlin Wall
[November 21st] Rengo (Japan Federation of Labor Unions) launched
[December 29th] Nikkei Stock Average 38,915 yen, all-time high (closing price)
- 1990 (Heisei 2) -
[January 7th] "Chibi Maruko-chan" broadcast starts
[January 13th] 1st National Center Test for University Entrance Examinations
[February 14th] The Rolling Stones' first performance in Japan starts
[March 27] “Regulations on the total amount of real estate loans” issued by the Ministry of Finance
[March 31st] International Flower and Greenery Expo opens
[April 1st] Merger of Taiyo Kobe and Mitsui city banks
[May 29] Tokyo's land white paper: “Condominiums are 11 times the average annual income”
[August 2] Iraq invades Kuwait
[October 3rd] East and West Germany unify, the beginning of the post-Cold War era
[October 6th] Sega “Game Gear” released
[November 12] His Majesty the Emperor's "Enthronement Ceremony"
[November 21st] Nintendo “Super Famicom” released
[December 2nd] First Japanese space flight
[December 23rd] Oguri Cap Arima Kinen and the final beauty
- 1989 (Heisei 1) -
[January 8th] Era name changes from Showa to Heisei
On January 8, 1989, the era name ``Showa,'' which had lasted for more than 60 years, was changed, and the new ``Heisei'' era began.
[February 13th] Recruit Incident Founders Arrested
This is a corruption case in which Recruit, which has grown rapidly with a focus on employment information magazines, distributed unlisted stocks that were sure to rise in value to political and business circles and bureaucrats.
Founder Hiromasa Ezoe and others were arrested.
Later, it was revealed that 17 politicians had received unlisted stocks in the names of their secretaries or themselves, shaking the political situation.
[April 1st] “Consumption tax” starts
It was also in this year that the consumption tax was introduced.
The tax rate at this time is 3%.
The aim was to secure stable welfare funding in anticipation of an aging society.
The tax rate has since been increased to 5%, 8%, and from October 2019 to 10%.
[April 21st] Nintendo “Game Boy” released
It became a long-selling portable game machine that was loved by many children.
[May 2nd] Market capitalization of companies listed on the First Section of the Tokyo Stock Exchange exceeds 500 trillion yen
The market capitalization of companies listed on the First Section of the Tokyo Stock Exchange (total value calculated by multiplying the closing price of each company by the number of shares) reached 501,366.4 billion yen on this day, reaching the 500 trillion yen mark for the first time.
The market capitalization of the New York Stock Exchange was 343,5222 yen as of the end of March, making the Tokyo market the world's largest by a wide margin.
[May 31st] Bank of Japan raises official discount rate
In order to curb the economic overheating caused by the bubble economy (abnormally rising land prices and stock prices), the Bank of Japan raised the ``official discount rate,'' the interest rate that is applied when lending funds directly to financial institutions.
The official discount rate, which was 2.5%, was gradually raised to 6% in 1990.
It is said to be one of the triggers for the bursting of the bubble.
[June 4th] Tiananmen Incident in China
As students and citizens demanding democracy held daily demonstrations and rallies and sat in on Tiananmen Square in the center of Beijing, China, the Chinese government imposed martial law.
On this day, martial law tanks entered Tiananmen Square and opened fire on students and civilians who had filled the square, resulting in many deaths.
[June 24th] Hibari Misora passed away
Misora Hibari, a nationally known singer known as the ``queen'' of popular songs, has passed away.
She made her debut as a girl singer in 1945, just after the war, and her songs such as ``Sad Whistle'' and ``Echigo Lion Song'' captured the hearts of people living in the post-war period of turmoil.
After that, she continued to produce songs with a more mature flavor, such as ``Sad Sake,'' and cemented her position.
In July of that year, she was awarded the People's Honor Award in recognition of her accomplishments in ``giving dreams and hopes to the people through her earnest devotional songs''.
[August 3rd] College enrollment rate for girls exceeds that for boys
The university entrance rate for women this year was an all-time high of 36.8%, exceeding the 35.8% for men.
[August 25] First female Chief Cabinet Secretary appointed
The Chief Cabinet Secretary resigned due to women's issues and was replaced by Environment Minister Mayumi Moriyama.
[September 22nd] Yokozuna Chiyo sets record for most wins at Fuji
Yokozuna Chiyonofuji set the record for the most wins at the Autumn Grand Sumo Tournament with 965 wins, and achieved ``1000 wins'' at the Nagoya Tournament the following year.
[September 27th] Sony agrees to acquire US film company “Columbia”
Sony has agreed to acquire Columbia Pictures Entertainment, a prestigious Hollywood film company with a long tradition in the United States.
Furthermore, on October 31st, Mitsubishi Estate announced that it would acquire New York's Rockefeller Center, and "Japan money" dominated the market.
[September 27] “Yokohama Bay Bridge” opens
The Yokohama Bay Bridge, which took eight years to complete, has opened to traffic.
It has a two-tiered structure, with the upper section being the Metropolitan Expressway and the lower section being the national highway, making it a transport route that supports port logistics.
As a symbol of Yokohama Port, it was lit up at night to create a night view of the port.
[November 9th] Fall of the Berlin Wall
The Berlin Wall, which was a symbol of the Cold War between East and West after World War II, collapsed due to the swell of democratization movements that took place in Eastern European countries.
This historic moment when the two countries became free to travel back and forth was witnessed not only by East and West Germany but also by the world.
[November 21st] Rengo (Japan Federation of Labor Unions) launched
Rengo, Japan's largest central organization of labor unions, has been established.
It was a new federation in which 8 million people, two-thirds of Japan's organized labor, participated.
Prior to the formation of the new federation, Sohyō, which had always played a leading role in Japan's postwar labor movement, was disbanded, ending its 40-year history.
[December 29th] Nikkei Stock Average 38,915 yen, all-time high (closing price)
At the last meeting of 1989, the Nikkei Stock Average closed at a record high of 38,915 yen.
- 1990 (Heisei 2) -
And then, 1990 passed.
In this year, the term "bubble economy" became a buzzword, but from its peak, the bubble gradually began to collapse.
[January 7th] "Chibi Maruko-chan" broadcast starts
A work set in Shimizu City, Shizuoka Prefecture (currently Shizuoka City), depicting the heartwarming daily life of a third-year elementary school girl.
It became a nationally popular anime, also known as ``Sazae-san of the Heisei era.''
[January 13th] 1st National Center Test for University Entrance Examinations
The first National Center Test for University Admissions was held in place of the previous University Common First Examination.
With 16 private universities participating for the first time, the number of applicants reached 430,000 nationwide.
[February 14th] The Rolling Stones' first performance in Japan starts
The Rolling Stones, a world-renowned British rock band, visited Japan for the first time.
A performance in Japan was scheduled for 1973, but was canceled at the last minute due to vocalist Mick Jagger's history of marijuana possession.
17 years later, their first performance in Japan was finally held at Tokyo Dome, sending Japanese fans into a frenzy.
[March 27] “Regulations on the total amount of real estate loans” issued by the Ministry of Finance
Real estate investment was heating up based on the ``land myth'' that ``land prices will not go down,'' and land prices were soaring.
After this regulation, land prices fell significantly.
Total volume controls continued until December 1991, and are said to be one of the triggers for the bursting of the bubble economy.
[March 31st] International Flower and Greenery Expo opens
The first expo in Asia opened in Osaka.
82 countries and 55 international organizations participated, the largest number ever at an international exposition.
Over 23.12 million people visited the exhibition during the period up to September 30th.
[April 1st] Merger of Taiyo Kobe and Mitsui city banks
As a result of this merger, a major city bank (later known as Sakura Bank) was born, making it the second largest bank in the world in terms of capital, after Dai-ichi Kangin Bank.
However, after the bubble burst, they were left with a large amount of non-performing loans, and were forced to rebuild their businesses with the introduction of public funds.
[May 29] Tokyo's land white paper: “Condominiums are 11 times the average annual income”
According to the Tokyo Metropolitan Government's "Land White Paper" announced on this day, the average price of a condominium (60 square meters) in Tokyo was 76.8 million yen in a survey conducted in the previous year and 1989, with the annual income of an average salaryman household. That's 11 times more than that.
It has become difficult to own a home in Tokyo, and many people live in small rental housing, and the rents have soared.
He points out that the abnormally high rise in land prices has caused a deterioration in the living environment of people living in Tokyo, and that ``the wealth gap between the haves and have-nots has widened and the sense of social injustice has become stronger.'' did.
[August 2] Iraq invades Kuwait
Iraqi forces suddenly invaded Kuwait, claiming that Kuwait was part of Iraq.
In response, the United Nations Security Council passed a resolution calling for Iraq's immediate and unconditional withdrawal, but President Hussein ignored this and continued the occupation by his military.
[October 3rd] East and West Germany unify, the beginning of the post-Cold War era
One year has passed since the fall of the Berlin Wall.
East Germany was incorporated into West Germany and the Federal Republic of Germany was born.
On this day, tens of thousands of people filled the area around the Brandenburg Gate, a symbol of the division between East and West, and waved the flag of West Germany, which became the flag of a unified Germany.
[October 6th] Sega “Game Gear” released
Game Gear, Japan's first portable game console with color LCD and replaceable software, was released and sold 600,000 units in one month.
[November 12] His Majesty the Emperor's "Enthronement Ceremony"
The Enthronement Ceremony and the Enthronement Seiden Ceremony were held at the Imperial Palace.
2,200 people attended, including representatives from 158 countries and two international organizations.
[November 21st] Nintendo “Super Famicom” released
The Super Famicom, which left its mark on the history of game consoles, was released.
After that, "Street Fighter 2" was released in 1992 and became a huge hit, mainly in the United States and overseas.
[December 2nd] First Japanese space flight
The Soviet spacecraft ``Soyuz'' carrying TBS reporter Toyohiro Akiyama was launched from the Baikonur Cosmodrome.
The spaceflight was planned by TBS in collaboration with the Soviet Space Directorate, and Akiyama reported on the Earth as seen from space.
[December 23rd] Oguri Cap Arima Kinen and the final beauty
Oguri Cap, the idol horse from the region who ignited the horse racing boom, entered the Arima Kinen race for his retirement.
This year, he suffered a series of disastrous defeats and dropped to 4th in popularity, but he overturned that reputation and won.
After the race, the sound of "O'Glycole" echoed through the racecourse, making it a famous scene in horse racing history.
It took 34 years and 2 months until the stock price hit its highest price.
During this time, the era changed from Heisei to Reiwa.
Looking back at those days, there were keywords that are relevant to today, such as the end of the Cold War between East and West and the advancement of women in society.
The present era can be seen from past events.
Please also take a look at the special site.
Chronology based on keywords: Progress in 2018