Japan's Nikkei 225 peaked at nearly 39,000 in December 1989 before the country's historic market crash.
The peak came at the end of Japan's asset-price bubble, when land and share prices had climbed dramatically. Easy credit, optimistic expectations, and rapid financial expansion helped drive the boom. The Nikkei reached its intraday record of 38,957.44 on December 29, 1989.
After the bubble burst, Japanese share and property prices fell for years. The prolonged period became known as the Lost Decade, although weakness and deflation extended beyond the 1990s. Banks carried large bad loans, companies reduced investment, and households became more cautious, making recovery difficult.
The index's 1989 peak is often confused with a calendar-year closing level or with a later record. The intraday high occurred on December 29, while the market's subsequent low came in 2009, when the Nikkei fell below 7,000 during the global financial crisis. Japan's experience remains a key case study in the consequences of asset bubbles.