WhyItDropped

KOSPI · February 5, 2010

The winter the recovery paused

-3.05%

single-day change vs previous close

Part of a longer stretch

Five more months of recovery

midway through · 2009-11-27 → 2010-04-26, +14.94% over the whole period

What happened that day?

  • The KOSPI fell 3.05% on the day
  • The budget deficits of Greece, Portugal and Spain were surfacing as a problem. Nobody was calling it the European crisis yet
  • China had also begun tightening bank lending, pulling back the money it had released in response to the crisis
  • Chinese tightening reaches Korea directly. When China cuts capital spending, orders for Korean intermediate goods fall first
  • The post-crisis recovery paused here, but not for long
  • Shares rose after this correction into April, and slipped again once the Greek problem broke properly

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.