What was the name of Japan’s stock-market peak-and-collapse crisis beginning after 1989?

Japan’s stock-market peak-and-collapse crisis beginning after 1989 is called the Japanese asset price bubble.

The bubble reached its stock-market high when the Nikkei 225 closed at 38,915.87 on December 29, 1989. Extremely high land and share prices had been supported by easy credit, optimistic expectations, and strong financial speculation. When prices began falling, banks and companies were left with large debts and weakened balance sheets.

The Nikkei then lost much of its value, while Japan experienced years of slow growth, falling prices, banking problems, and weak investment. These years are commonly called the Lost Decade, although economic stagnation extended beyond the 1990s. The two terms are related but not identical: the bubble describes the boom and collapse, while the Lost Decade describes the prolonged aftermath.

Japan’s experience is often studied as a warning about credit-fuelled asset booms. It also differs from a single-day crash because the adjustment unfolded over years rather than one dramatic session.