Japan’s Nikkei 225 reached its all-time closing peak on December 29, 1989, before the country’s asset-price bubble burst.
The index closed at 38,915.87 on that date. The peak followed years of soaring Japanese property and share prices, easy credit, financial optimism, and expectations that Japan’s economy would continue its rapid expansion. After the peak, the Nikkei entered a prolonged decline.
Japan’s bubble collapse affected banks, corporations, households, and public finances. Falling land values weakened collateral, while bad loans accumulated in the banking system. The subsequent period is often called the Lost Decades, although economists debate how many decades the label should cover and which policies best explain the slow recovery.
The Nikkei’s 1989 peak is sometimes confused with the 1990 start of the visible market decline. December 29 is the key date because it records the index’s highest closing level, not merely a later intraday or calendar-year milestone.