WhyItDropped

KOSPI · February 24, 2022

The day the war began

-2.60%

single-day change vs previous close

Part of a longer stretch

Korea's 2021–22 rate-hike bear market

midway through · 2021-07-06 → 2022-09-30, -34.79% over the whole period

What happened that day?

  • The KOSPI fell 2.6% on the day
  • Russia invaded Ukraine. It had been a long time since a large land war in Europe
  • The route to Korea ran through raw materials. The two countries were major suppliers of oil, natural gas, grain and nickel
  • Dearer raw materials push already-high inflation higher, which forces central banks to raise rates further
  • So it was less the war itself than what it would do to prices and rates
  • Because of that structure, war news and inflation data moved the market in the same direction for more than a year afterwards

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.