KOSPI · July 11, 2013
The day the tapering fear lifted
+2.93%
single-day change vs previous close
Part of a longer stretch
Two years going nowhere
early in it · 2013-06-25 → 2015-04-23, +22.06% over the whole period
What happened that day?
- The KOSPI rose 2.93% on the day. 25 June had been the bottom of this decline
- The Fed chair said accommodative policy would be needed for some time, easing fears that bond buying would soon be cut
- When the Fed had mentioned tapering that May, money left emerging markets all at once, and Korea was caught in it
- The pattern repeats: money flows to emerging markets while America is easing, and leaves all at once when it moves to tighten
- Korea was shaken less than most emerging markets, though, because it ran a current account surplus and held ample reserves
- The recovery that began here ran nearly two years, and through it the index stayed inside its narrow band
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.