Japan experienced the Nikkei 225’s record peak of 38,957.44 before the early-1990s crash.
The index reached that closing high on 29 December 1989, at the end of Japan’s asset-price bubble. During the late 1980s, Japanese land and share prices rose dramatically, supported by easy credit, optimistic expectations, and strong corporate expansion. The Nikkei became a symbol of the era’s confidence.
The Bank of Japan then tightened monetary policy, and asset prices began to fall. The Nikkei’s decline continued through the early 1990s, while property prices also dropped. Banks were left with troubled loans and weakened balance sheets, contributing to a prolonged period of slow growth often called Japan’s “Lost Decades.”
The episode is sometimes described simply as a stock-market crash, but it was a broader financial and real-estate collapse. The 38,957.44 figure is a closing value, not an intraday record. The Nikkei eventually recovered and surpassed that level only decades later, making the 1989 peak one of the most famous examples of a market high followed by a long stagnation.