What was the name of the 1989 Japanese stock-market crash’s preceding speculative asset bubble?

The 1989 Japanese stock-market crash was preceded by the Japanese asset price bubble.

During the late 1980s, Japanese share and land prices rose dramatically. Easy credit, strong optimism, and expectations that asset values would keep increasing encouraged speculation. The Nikkei 225 reached its record closing level on December 29, 1989, and then began a long decline.

Japanese banks had made extensive loans secured by valuable real estate. When the bubble burst, falling land prices weakened borrowers and financial institutions, while falling shares damaged balance sheets and confidence. The resulting period of slow growth and deflation is often called Japan’s Lost Decades.

The bubble was broader than a stock bubble because property prices were central to the financial system. It is also different from the later dot-com bubble, which was concentrated mainly in technology and internet shares. Japan’s crash became a major example of how asset-price booms can leave long-lasting financial damage.