Which country’s stock-market index peaked on December 29, 1989, before its long asset-price crash?

Japan’s Nikkei 225 peaked on December 29, 1989, before the country’s long asset-price crash.

The index reached an intraday high of 38,957.44 at the end of a decade marked by rapid credit growth, rising land prices, and strong enthusiasm for Japanese corporations. The boom was supported by easy monetary conditions and abundant bank lending, while property and share valuations climbed far beyond levels justified by many underlying earnings measures.

After the peak, the Bank of Japan tightened policy and the bubble deflated. Share prices and land values fell, damaging banks, companies, and household wealth. Japan then endured a prolonged period of weak growth and financial repair often called the “Lost Decades.”

The Nikkei did not simply fall for one day and recover. Its decline extended over years, and the index remained below its 1989 peak for decades. The crash is often used as a case study in how asset bubbles, leveraged balance sheets, and delayed recognition of bad loans can reinforce one another.