Japan experienced the Nikkei 225’s historic peak of 38,915.87 before its early-1990s market crash.
The index reached 38,915.87 at the close of trading on 29 December 1989. This peak came during Japan’s asset-price bubble, when land and equities rose to extraordinary levels amid plentiful credit and optimistic expectations.
The bubble burst after monetary tightening and falling asset prices. The Nikkei then entered a prolonged decline, and Japan’s economy experienced years of weak growth, banking problems, and deflationary pressure. The crash is often associated with the beginning of Japan’s “Lost Decades,” although that phrase covers a longer and more complicated period. The Nikkei did not regain its 1989 closing high until 2024.