The Nikkei 225 crashed after reaching its all-time closing high on December 29, 1989.
The index closed at 38,915.87 at the end of Japan’s asset-price bubble. During the late 1980s, Japanese land and equity prices rose dramatically, supported by easy credit, optimistic expectations, and financial speculation. When monetary policy tightened and asset prices turned downward, the resulting collapse damaged banks, companies, and households.
The Nikkei’s decline became a central feature of Japan’s “lost decades” of economic stagnation. Unlike a brief one-day crash, the market’s retreat unfolded over years, with repeated rallies and further declines. The index remained far below its 1989 peak for decades.
The Nikkei 225 is not the same as the broader TOPIX index, although both measure Japanese equities. The December 29 record is a closing high; intraday prices reached a slightly higher level on December 29 as well.