Japan experienced the 1989 collapse of the asset-price bubble that preceded its Lost Decades.
Japanese stock and property prices had surged during the second half of the 1980s. The Nikkei 225 reached its pre-collapse record near the end of 1989, while land prices and corporate valuations also appeared exceptionally high. Tightening financial conditions and the end of speculative buying helped bring the boom to an end.
The resulting stagnation affected Japan for years, with weak growth, falling asset values, banking problems, and periods of deflation. The phrase “Lost Decades” commonly refers to the prolonged economic malaise beginning in the 1990s, although scholars debate its exact end and whether later weak-growth periods should be included. Japan is the country; the Nikkei 225 is the stock index most associated with the episode.