The Nikkei 225 reached its pre-crash peak on December 29, 1989, before Japan’s asset-price bubble burst.
The Nikkei 225, Japan’s best-known stock-market index, closed at 38,915.87 on December 29, 1989. That record reflected the extraordinary rise in Japanese share and land prices during the late-1980s asset bubble. The index then entered a prolonged decline as the bubble collapsed.
Japan’s downturn was not simply a one-day stock-market crash. Falling land values, banking-sector weaknesses, corporate debt, and reduced investment contributed to a long period of economic stagnation. The Nikkei’s 1989 peak remained below its later 2024 record for decades.
The TOPIX is another important Japanese index, but it tracks a broader group of companies. The Nikkei 225 is price-weighted and consists of 225 major companies listed on the Tokyo Stock Exchange’s Prime Market.