Why Japan’s 10-Day Break Has Markets Worried

Japan’s extended spring vacation, when a series of national holidays bunch up, is known as “Golden Week.” This year adds the May 1 accession of the new emperor, Crown Prince Naruhito, to the mix. The result: a 10-day stretch that wipes out six trading sessions -- the longest market closure since the end of World War II. What might sound like a nice, relaxing break actually has traders and regulators alike fretting about the potential for cash shortages, market volatility or even the kind of “flash crash” that happened during Japan’s last New Year holiday. That was only four days long.

Japan is among the most generous countries when it comes to national holidays. Golden Week traditionally consists of four in late April-early May: Showa Day, Constitution Day, Greenery Day and Children’s Day. In the middle this year comes the emperor’s accession, with the day before, of, and after the succession designated as holidays too. Combined with weekends, Golden Week 2019 stretches from April 27 through May 6. Typically, people spend the time vacationing abroad or visiting their families. Many stores close.