Japan’s stock exchange was at the center of the 1990 Japanese asset-price crash. During the late 1980s, Japanese equity and property prices rose dramatically amid abundant credit, strong optimism, and speculative investment. The Nikkei 225 reached its all-time closing high of 38,915.87 on December 29, 1989.
The boom reversed soon afterward. Japanese share prices fell sharply in 1990, while land prices also declined over subsequent years. The damage left banks burdened with bad loans and weakened businesses and households. Japan then experienced a prolonged period of slow growth and financial stress often called the Lost Decades.
The crash was not simply a one-day event. It involved the unwinding of a broad asset bubble, and the stock-market decline preceded a much longer adjustment in property, banking, and economic conditions. The country’s experience also influenced later debates about deflation, bank restructuring, and monetary policy.