What 1989 event caused Tokyo share prices to plunge and triggered Japan’s long asset-price collapse?

The burst of Japan’s asset-price bubble caused Tokyo share prices to plunge and triggered the country’s long asset-price collapse.

During the late 1980s, Japanese land and stock prices rose to extraordinary levels amid easy credit, financial optimism, and speculative buying. The Bank of Japan then tightened monetary policy, helping bring the boom to an end.

The Nikkei 225 reached its peak on 29 December 1989. Although prices did not fall in one uninterrupted move, the subsequent collapse damaged banks, companies, property owners, and households.

The prolonged aftermath is commonly called Japan’s Lost Decades. The phrase refers to extended economic stagnation and deflation, although the precise duration and causes remain subjects of economic debate. The bubble’s collapse was distinct from the 1997 Asian financial crisis.