What was the name of the 1989 Japanese stock-market bubble whose collapse began Japan's Lost Decades?
Answer
Japanese asset price bubble
Answer
Japanese asset price bubble
The 1989 Japanese stock-market bubble whose collapse began Japan’s Lost Decades was the Japanese asset price bubble.
Japanese land and share prices rose dramatically during the second half of the 1980s, supported by easy credit, strong optimism, and speculative investment. The Nikkei 225 reached an intraday record of 38,957.44 on December 29, 1989.
Asset prices then fell, leaving banks with bad loans and companies with weakened balance sheets. Japan experienced prolonged low growth, deflationary pressure, and financial-sector problems during the 1990s and beyond.
The phrase Lost Decades commonly describes the extended period of economic stagnation that followed, although economists debate its precise dates and causes. The bubble involved both stocks and real estate, so calling it only a stock bubble leaves out a major part of the episode.
Source: Wikipedia · fact-checked Oct. 2026