Which Japanese stock-market bubble burst at the start of the 1990s, beginning the country's 'Lost Decades'?

The Japanese asset price bubble burst at the start of the 1990s and began the country’s prolonged ‘Lost Decades.’

During the late 1980s, Japanese shares and land prices rose sharply amid easy credit, strong speculation, and optimistic expectations. The Nikkei 225 reached an intraday peak of 38,957.44 on December 29, 1989. The Bank of Japan then tightened monetary policy, and asset prices began a dramatic decline.

The collapse damaged banks, corporations, and households because many loans had been secured against inflated property values. Japan experienced weak growth, falling or stagnant prices, and long periods of financial repair. The phrase ‘Lost Decades’ usually refers to the economic stagnation that followed, while the bubble itself describes the earlier boom in stocks and real estate. The Nikkei did not regain its 1989 closing high until 2024.