The Nikkei 225 peaked on December 29, 1989, before Japan's asset-price bubble burst.
The index closed at 38,915.87 on that date, marking the high point of a spectacular rise in Japanese equities and property prices during the 1980s. Easy credit, strong optimism, and rapidly rising land values helped fuel the bubble.
After the peak, Japanese share prices entered a long decline. The Nikkei lost much of its value during the 1990s, contributing to the period often called Japan's Lost Decade, although the country's economic difficulties extended beyond one decade.
The Nikkei 225 is sometimes confused with the broader TOPIX index. The Nikkei is a price-weighted index of 225 major companies listed on the Tokyo Stock Exchange, while TOPIX is capitalization-weighted and covers a broader market.