The Nikkei 225 fell from its 1989 peak during the crash of Japan's asset-price bubble.
The index reached an intraday record of 38,957.44 on December 29, 1989. Japan's stock and property prices had risen dramatically during the 1980s, supported by easy credit, optimistic expectations, and intense speculation. After monetary policy tightened, asset prices began to fall.
The Nikkei declined for years as banks confronted bad loans and companies reduced investment. Japan entered a prolonged period of weak growth and deflation commonly associated with the “lost decades.” The crash therefore became more than a brief trading panic: it marked the unwinding of a broad financial and property bubble.
The Nikkei 225 and TOPIX are different indexes. The Nikkei is price-weighted and tracks 225 major Tokyo-listed companies, while TOPIX is capitalization-weighted and covers a broader segment of the market.