KOSPI · June 13, 2022
The day inflation refused to turn
-3.52%
single-day change vs previous close
Part of a longer stretch
Korea's 2021–22 rate-hike bear market
near the end of it · 2021-07-06 → 2022-09-30, -34.79% over the whole period
What happened that day?
- The KOSPI fell 3.52% on the day
- A US inflation reading released the previous Friday had come in far above expectations, destroying the hope that prices were turning
- The market shifted toward the Fed raising by three quarters of a point at once. Until then half a point had been treated as the ceiling
- Raising that fast carries the calculation that the economy breaks. It was a stretch of worrying about inflation and recession at the same time
- Korea earns by exporting, so a weakening world economy hits it directly. That is why one US inflation figure moved the KOSPI so much
- The Fed did raise three quarters of a point that week, and repeated the same step several times that year
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.