KOSPI · June 8, 2006
The June money left emerging markets
-3.45%
single-day change vs previous close
Part of a longer stretch
The 2006 emerging market selloff
near the end of it · 2006-05-11 → 2006-06-13, -17.81% over the whole period
What happened that day?
- The KOSPI fell 3.45% on the day
- A high US inflation reading raised expectations that central banks everywhere would keep raising rates
- Money had been cheap for years and had crowded into emerging-market shares and commodities
- Rising rates reverse that flow, and the riskiest assets are sold first
- Korea, classed as an emerging market, was directly exposed. Being large and easy to sell out of, it is often sold first of all
- 13 June was the bottom, and recovery began that summer when the Fed stopped raising
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.