Japan experienced the Nikkei 225 collapse after its asset-price bubble peaked in 1989.
The Nikkei 225 reached an all-time closing high of 38,915.87 on December 29, 1989. The peak followed a spectacular rise in Japanese stock and property prices, supported by easy credit and strong optimism about the economy.
The bubble burst as monetary policy tightened and asset valuations became unsustainable. The Nikkei fell dramatically during the early 1990s, while property prices also declined. Banks were left with large amounts of bad debt, and Japan entered a long period of weak growth and financial repair often called the Lost Decades. The index did not regain its 1989 closing high until 2024, making the episode one of the longest recoveries among major stock-market crashes.