KOSPI · August 20, 2007

After the Fed's first move

+5.69%

single-day change vs previous close

Part of a longer stretch

The 2007 Fed-cut relief rally

early in it · 2007-08-17 → 2007-10-02, +22.96% over the whole period

What happened that day?

The KOSPI rose 5.69% on the day. 17 August had been the bottom of this decline
The Fed cut the rate at which it lends to banks directly. It had not yet touched the policy rate
The move makes it easier for banks to borrow from the Fed in a pinch, with the aim of stopping funding from freezing
What shook Korea in this period was not actual losses but money flows. When the world reduces risk, emerging-market shares are sold first
From this day the KOSPI rebounded to a record high in October — its last peak before the crisis proper
In the year after that peak it lost more than half its value

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.