WhyItDropped

KOSPI · September 9, 2015

The give-back after the China shock

+2.96%

single-day change vs previous close

Part of a longer stretch

Twenty months that finally broke the range

early in it · 2015-08-24 → 2017-05-04, +22.48% over the whole period

What happened that day?

  • The KOSPI rose 2.96% on the day
  • Chinese shares had broken through the summer and the yuan had been devalued, dragging Asian markets down. 24 August was the bottom of that
  • This day's gain came on expectations that China would loosen fiscal policy to support growth
  • Korea moves on Chinese news because of its export structure. China is its largest customer, and most of what it sells is intermediate goods tied directly to Chinese capital spending
  • The KOSPI had been stuck inside a narrow band for years by now. This advance did not break out of it either
  • The breakout came with the semiconductor boom in the second half of 2016

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.