Japan’s Nikkei 225 reached its all-time closing peak on 29 December 1989.
The index closed at 38,915.87 on that date, near the end of Japan’s asset-price bubble. During the late 1980s, Japanese land and equity prices rose rapidly amid easy credit, strong optimism, and expectations of continuing economic expansion.
The bubble then burst. Japanese stock and property prices fell, banks accumulated bad loans, and economic growth weakened. The prolonged aftermath is often called Japan’s “Lost Decades,” although the exact number of decades and the causes of the stagnation are debated.
The 1989 peak is distinct from the 1987 global crash, which was centered on a sudden worldwide equity sell-off. Japan’s later collapse developed over a longer period and was closely tied to the bursting of domestic asset bubbles.