The Nikkei 225 peaked in 1989 before Japan’s long market decline.
Japan’s asset-price bubble expanded during the second half of the 1980s, fueled by rising property and share prices, easy credit, and strong investor confidence. The Nikkei 225 reached its record closing level of 38,915.87 on December 29, 1989.
The bubble then burst. Japanese share prices fell dramatically, while property values also declined. The prolonged economic stagnation that followed is often called Japan’s “lost decades,” though the timing and causes of that period are discussed in broader economic terms.
The Nikkei’s 1989 peak is sometimes confused with the later peak of the broader TOPIX index. They are separate Japanese benchmarks, and the Nikkei 225 is a price-weighted index of 225 companies listed on the Tokyo Stock Exchange.