WhyItDropped

KOSPI · November 11, 2022

One inflation number, and everything jumped

+3.37%

single-day change vs previous close

Part of a longer stretch

Six weeks off the bear-market bottom

near the end of it · 2022-09-30 → 2022-11-11, +15.20% over the whole period

What happened that day?

  • The KOSPI rose 3.37% on the day
  • US consumer prices for October, released the night before, came in below expectations — the first clear evidence that inflation had begun to turn
  • US tech stocks had their best day since the spring of 2020 on the news, and Asia picked it up the next morning
  • What had held stocks down through 2022 was never inflation itself but **how much further rates would have to rise to catch it.** That number had just come down
  • The currency moved too: the won strengthened sharply, making conditions easier for foreign buyers
  • The decline did not end here, though. Stocks slipped again into year-end and turned only in early 2023

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.