Japan’s Nikkei 225 peaked at a closing value of 38,915.87 on December 29, 1989, before the country’s asset-price crash.
The peak came after a major expansion in Japanese share and land prices during the second half of the 1980s. Easy credit, strong optimism, and rising asset valuations helped push stock prices to extraordinary levels. The Nikkei’s record close became a symbol of the bubble’s height.
After the peak, Japanese equities fell sharply as monetary policy tightened and speculative excesses unwound. Land prices also declined, and banks were left with large quantities of troubled loans. The resulting stagnation is often called Japan’s “Lost Decades,” although the economic and demographic problems continued for many years and had several causes.
The Nikkei later traded far below its 1989 peak. The record was not surpassed until 2024, when Japan’s benchmark index finally moved above its previous all-time high.