WhyItDropped

KOSPI · October 4, 2022

The first bounce off the bear-market bottom

+2.50%

single-day change vs previous close

Part of a longer stretch

Six weeks off the bear-market bottom

early in it · 2022-09-30 → 2022-11-11, +15.20% over the whole period

What happened that day?

  • The KOSPI rose 2.5% on the day. 30 September had been the bottom of that year's bear market
  • The British government reversed part of the tax cuts it had announced without a funding plan, and the world government bond market it had shaken settled down
  • In late September gilts and the pound had broken together and world markets shook with them. Developed-market government bonds breaking is rare
  • When government bonds steady, money stops leaving risk assets, and markets classed as emerging — like Korea — respond first
  • The exchange rate also peaked around now and began coming down
  • The recovery that began here ran for years, into 2025

Sources

Every figure on this page is recomputed from the original daily closing prices and checked against them at build time. The account of what happened is written from the sources listed above.