The Japanese stock index that lost more than 60% from its 1989 peak during the asset-price bubble collapse was the Nikkei 225.
The Nikkei reached an intraday high of 38,957.44 on December 29, 1989. Japan’s property and equity prices then fell sharply after years of rapid credit growth and speculation. By August 1992, the index had fallen below 15,000, representing a decline of more than 60% from its peak.
The collapse ushered in a prolonged period often called Japan’s Lost Decades. Falling asset values weakened banks, businesses, and households, while deflation and slow growth persisted. The TOPIX is another major Japanese index, but the Nikkei 225 is the index most commonly used when identifying the famous 1989 peak and subsequent collapse.