Japan's Nikkei 225 reached its historical closing peak on December 29, 1989, before a prolonged crash.
The index closed at 38,915.87 at the end of 1989. That peak marked the height of Japan's asset-price bubble, during which share prices and urban land values rose dramatically. Easy credit, financial deregulation, optimistic expectations, and speculative investment all contributed to the boom.
The bubble burst around the start of the 1990s. Japanese share prices fell sharply, and the country entered a long period of weak growth, banking problems, and deflation commonly called the Lost Decades. The Nikkei's earlier peak remained unmatched for many years.
The Nikkei 225 is a price-weighted index of 225 major companies listed on the Tokyo Stock Exchange. The 1989 date refers to the closing record; intraday records and later record highs are separate measurements.