The Nikkei 225 peaked on December 29, 1989, before Japan’s asset-price bubble collapse.
The index reached an intraday high of 38,957.44 on the final trading day of 1989. Japan’s stock and property markets had risen dramatically during the late 1980s, supported by easy credit, optimistic expectations, and rapidly increasing land prices.
After the peak, Japanese share prices fell for years. The Bank of Japan tightened monetary policy, and the boom’s unwinding exposed weaknesses in banks and corporate balance sheets. The prolonged economic stagnation that followed became associated with Japan’s “lost decades.”
The Nikkei 225 should not be confused with TOPIX, another major Japanese equity index. The Nikkei is price-weighted and tracks 225 prominent companies listed on the Tokyo Stock Exchange. Its 1989 peak was eventually surpassed only in 2024, when the index reached a new record high.