Japan’s Nikkei 225 reached a pre-crash record closing level of 38,915.87 on December 29, 1989.
The record came near the end of Japan’s asset-price bubble, a period when property and share prices rose dramatically. Easy credit, strong optimism, and rapidly increasing land values helped push the market to extraordinary levels during the second half of the 1980s.
After the 1989 peak, Japanese share prices began a prolonged decline. The Bank of Japan had raised interest rates to restrain speculation, and tighter financial conditions helped expose the gap between asset valuations and underlying economic conditions.
The Nikkei’s fall became part of Japan’s “Lost Decades,” a long period marked by weak growth, deflationary pressure, and balance-sheet problems. The 1989 figure is a closing value; intraday highs and later records are separate measurements.