Which date marked the peak of Japan’s Nikkei 225 before the 1990s crash?

Japan’s Nikkei 225 reached its pre-crash peak on December 29, 1989.

The index closed at 38,915.87 on that date, after a spectacular rise in Japanese share and property prices during the late 1980s. Easy credit, optimistic expectations, and asset-price speculation helped drive the boom. The Bank of Japan then tightened monetary policy, and the bubble began to deflate.

The Nikkei’s fall marked the start of a prolonged period of economic and financial weakness. Japanese banks carried large portfolios of bad loans, while falling property values damaged borrowers and lenders. The country’s subsequent stagnation is commonly associated with the “Lost Decades.”

The peak date is sometimes confused with the later low point of the crash. The Nikkei continued falling for years and reached a much lower trough in 2009, so the 1989 record was a starting point, not the end of the decline.