WhyItDropped

KOSPI · February 22, 2007

Money returns to emerging markets

+21.73%

trough back to the old high

173 trading days · 2006-06-13 → 2007-02-22

this undid the slide that began 2006-05-11

What happened that day?

  • From the 13 June 2006 low to 22 February 2007 the KOSPI rose 21.73% — 173 trading days
  • It undid the emerging market selloff
  • Once it was clear US rate rises were nearly done, money flowed back into emerging markets
  • China kept growing fast and Korean exports to China grew with it
  • Shipbuilding and steel — sectors tied directly to Chinese demand — pulled the index up
  • The old high returned on 22 February 2007, and the advance ran until the first subprime shock that summer

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.