KOSPI · May 25, 2006
The month money left emerging markets together
-2.82%
single-day change vs previous close
Part of a longer stretch
The 2006 emerging market selloff
midway through · 2006-05-11 → 2006-06-13, -17.81% over the whole period
What happened that day?
- The KOSPI fell 2.82% on the day
- **No single cause for that day has been pinned down.** What is established is that it sat inside the worldwide emerging-market selloff of May 2006
- For several years cheap money had flowed into emerging-market shares and raw materials. US inflation coming in higher than expected reversed that flow
- When rates look like rising, the money that travelled furthest comes home first — and emerging markets are always that far end
- Over this one month the KOSPI was pushed down hard and bottomed in mid-June
- From there it climbed again into early 2007
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.