Japan’s Nikkei 225 lost more than half its value after the Japanese asset-price crash began.
The Nikkei 225 reached an intraday record of 38,957.44 on December 29, 1989. A tightening monetary policy, concern about excessive valuations, and the unwinding of a huge property and equity bubble then pushed prices lower. By the end of 1990, the index had fallen substantially, and the decline continued for years.
The burst marked the end of Japan’s late-1980s asset boom and contributed to a prolonged period often called the Lost Decades. Banks carried large volumes of bad loans, land prices weakened, and businesses reduced investment. The Nikkei’s later low was far below its 1989 peak, although the exact description of the crash varies depending on whether analysts measure from the closing high, intraday high, or a later trough.