The Nikkei 225 peaked in 1989 before Japan’s long market collapse.
The index reached an intraday high of 38,957.44 on December 29, 1989. The peak marked the end of Japan’s asset-price bubble, during which stock and land prices rose dramatically. Easy credit, optimistic expectations, and financial deregulation helped fuel the boom, while land and equity values became increasingly detached from underlying economic returns.
After the bubble burst, Japanese stock and property prices fell for years. Banks were left with large amounts of bad debt, and weak demand and financial-sector problems contributed to a prolonged period of slow growth. The Nikkei’s 1989 peak became a major reference point for the scale and duration of the decline.
The Nikkei 225 is not the same as TOPIX. The Nikkei is a price-weighted index of 225 companies listed on the Tokyo Stock Exchange’s Prime Market, while TOPIX is capitalization-weighted and covers a broader group. That distinction matters when comparing Japanese market performance.