On what date did the Nikkei 225 reach its all-time high during Japan’s asset-price bubble?

The Nikkei 225 reached its all-time high during Japan’s asset-price bubble on December 29, 1989.

The index closed at 38,915.87, marking the peak of a spectacular rise in Japanese stocks and real estate during the late 1980s. Easy credit, financial deregulation, optimistic expectations, and rapid asset-price inflation helped drive the boom.

After the peak, Japanese share and land prices collapsed. The resulting period is commonly called the Lost Decades, although its economic and social effects extended across several decades and recovery was uneven. Banks carried large amounts of problem loans, businesses reduced investment, and deflation became a persistent concern.

The 1989 date is specifically the closing high of the Nikkei 225, not merely a yearly estimate. The index later fell far below that level and did not regain it for decades. This makes the episode an important example of how an asset bubble can affect banking, employment, prices, and long-term growth.