What was the name of Japan’s late-1980s asset-price collapse that began the country’s long stagnation?

Japan’s late-1980s asset-price collapse was the bursting of the Japanese asset price bubble.

During the second half of the 1980s, Japanese share and land prices rose dramatically amid abundant credit, financial optimism, and speculation. The Nikkei 225 reached its record closing level of 38,915.87 on December 29, 1989. Monetary tightening and changing financial conditions then helped end the boom.

The Nikkei fell sharply in the early 1990s, while land prices also declined for years. Banks were left with large nonperforming loans, and weak demand and financial repair contributed to prolonged economic stagnation. This period is commonly associated with Japan’s “Lost Decade,” although the weakness extended beyond the 1990s.

The bubble is not itself the name of a single trading day. That distinction matters: Japan experienced a long asset-price deflation rather than one globally famous session like Black Monday 1987. The crash’s consequences also centered on banking and real estate, not only listed shares.