Japan’s stock-market crash after its late-1980s asset bubble began the period known as Japan’s Lost Decade.
Japanese share and property prices soared during the second half of the 1980s. The Nikkei 225 reached its historic closing peak of 38,915.87 on 29 December 1989. After the bubble burst, equity and land values fell, leaving banks and companies with heavy debt and impaired assets.
The economy then experienced weak growth, falling prices, banking problems, and repeated financial support measures. The phrase “Lost Decade” originally described the 1990s, although some economists use “Lost Decades” for the prolonged stagnation extending into the 2000s and beyond.
Japan’s episode is often confused with the 1987 global stock-market crash. Japan’s bubble collapse developed over several years and was closely tied to domestic property and credit excesses, whereas Black Monday was a worldwide one-day equity shock. The Nikkei later remained below its 1989 peak for decades.