Japan’s bubble-era crash is associated with the Nikkei 225 peak on 29 December 1989.
The Japanese asset-price bubble developed during the late 1980s as land and share prices rose to extraordinary levels. Easy credit, strong optimism, and financial speculation helped push valuations far beyond levels supported by ordinary economic activity. The Nikkei 225 reached an intraday high of 38,957.44 on 29 December 1989.
After the Bank of Japan tightened monetary policy and credit conditions changed, asset prices fell. The Nikkei lost much of its value, while land prices also declined. Banks were left with bad loans backed by depreciating collateral, contributing to a long period of weak growth, deflationary pressure, and financial-sector restructuring.
The aftermath is often called Japan’s “Lost Decades,” although the exact dating and interpretation vary. This crash is distinct from the 1987 global Black Monday: Japan’s bubble peaked later and its consequences unfolded over years. The Nikkei eventually returned above its 1989 closing peak only decades afterward.