The Nikkei 225 peaked in 1989 before Japan’s long collapse after its asset-price bubble.
The index reached an all-time closing high of 38,915.87 on December 29, 1989. That peak came after years of rising Japanese share and property prices, supported by easy credit, strong optimism, and speculative investment. The Bank of Japan then tightened monetary policy, and asset prices began to fall.
The stock-market decline became part of a broader financial and economic downturn. Banks held large quantities of loans connected to real estate, and falling land values weakened collateral and balance sheets. Japan subsequently experienced slow growth, banking problems, deflationary pressure, and repeated policy responses, a period often called the “Lost Decades.”
The 1989 peak is not the same event as Black Monday in October 1987. Japan’s market did fall during the global 1987 shock, but its historic bubble top occurred two years later. The Nikkei eventually traded far below its 1989 level for decades.