Japan’s Nikkei 225 reached its record closing high before the early-1990s stock-market crash on December 29, 1989.
The index closed at 38,915.87 on that date, near the end of Japan’s late-1980s asset-price boom. Extremely high land and equity valuations had been supported by rapid credit growth, optimistic expectations and financial speculation.
The boom reversed soon afterward. Japanese share prices fell dramatically during the 1990s, while the collapse in property values and banking-sector stress contributed to a prolonged period of weak economic growth often associated with Japan’s Lost Decades.
The record closing high is distinct from an intraday high and from the later dates when the Nikkei reached temporary rebounds. The 1989 peak remained unbroken for decades, making it a widely cited reference point in accounts of Japan’s stock-market bubble and crash.