What was the name of Japan’s late-1980s asset-price collapse that led to a prolonged market slump?

Japan’s late-1980s collapse is known as the Japanese asset price bubble.

The bubble involved extraordinary increases in Japanese share and land prices during the second half of the 1980s. The Nikkei 225 reached an all-time closing high of 38,915.87 on December 29, 1989. After the bubble burst, both equities and property values fell for years.

The resulting stagnation is often called Japan’s Lost Decade, although economic weakness and financial problems extended beyond the 1990s. Banks were left with non-performing loans, businesses reduced investment, and deflationary pressures became persistent.

The terms describe different things: the asset-price bubble is the boom and collapse itself, while the Lost Decade describes the prolonged economic aftermath. Japan’s experience is frequently discussed as a warning about credit expansion, speculative valuations, and delayed financial-sector repair.