The Nikkei 225 lost nearly half its value during Japan’s stock-market crash from 1989 to 1990.
The index reached its all-time closing high of 38,915.87 on 29 December 1989. It then fell rapidly as Japan’s asset-price bubble burst. By October 1990, the Nikkei had dropped to roughly half its peak level, although the broader consequences continued for decades.
The bubble had lifted Japanese share and land prices to extraordinary levels. Easy credit, optimistic expectations, and financial deregulation helped drive speculation. The Bank of Japan later tightened monetary policy, and falling asset prices weakened banks, companies, and household balance sheets.
Japan’s prolonged aftermath is often called the Lost Decades. The crash was not a single day comparable to Black Monday; it was the collapse of an enormous asset bubble followed by banking problems, deflationary pressure, and slow growth. The Nikkei eventually recovered its 1989 record only decades later.