Japan experienced the 1990 stock-market crash after the Nikkei 225 peaked in December 1989.
The Nikkei 225 reached an all-time intraday high of 38,957.44 on 29 December 1989. The peak came during Japan’s asset-price bubble, when land and share prices rose rapidly amid easy credit, optimistic expectations, and heavy speculation. The Bank of Japan then tightened monetary policy, and the bubble began to deflate.
The Nikkei fell sharply during 1990, while land prices also declined. The resulting problems affected banks, businesses, households, and the wider economy. Japan entered a prolonged period of weak growth and financial stress often called the Lost Decades.
The crash was part of a broader asset-price collapse rather than an isolated one-day event. The Nikkei did not return to its 1989 peak for decades; it finally exceeded that level in February 2024. Japan’s experience is often compared with later bubbles because it shows how falling collateral values can weaken banks and borrowers at the same time.