The Nikkei 225 fell after reaching its historic peak on December 29, 1989.
The index closed at 38,915.87 on that date, near the end of Japan’s asset-price bubble. Japanese stock and land prices had risen dramatically during the 1980s, supported by abundant credit, strong optimism, and expectations that asset values would continue climbing. When monetary conditions tightened and the bubble burst, prices began a prolonged decline.
The Nikkei’s fall became part of Japan’s “Lost Decades,” a period marked by weak growth, deflationary pressure, banking problems, and repeated efforts to repair balance sheets. The index remained far below its 1989 peak for decades and did not close above that level until 2024.
The Nikkei 225 is a price-weighted index of 225 major companies listed on the Tokyo Stock Exchange’s Prime Market. It is often confused with TOPIX, which uses a different construction and broader coverage. Both are important Japanese benchmarks, but the 1989 record specifically belongs to the Nikkei 225.