WhyItDropped

KOSPI · August 2, 2024

The plunge the day before the crash

-3.65%

single-day change vs previous close

Part of a longer stretch

Nine months of giving it back

early in it · 2024-07-11 → 2025-04-09, -20.67% over the whole period

What happened that day?

  • The KOSPI fell 3.65% on the day
  • Weak US manufacturing data and rising jobless claims deepened worry about recession
  • The Bank of Japan had raised rates days earlier and the yen was strengthening on top of that
  • Money borrowed cheaply in yen and placed in other countries' assets began to be pulled back all at once, and some of it had been in Korean shares
  • The fall peaked the next session, on 5 August, when the KOSPI dropped 8.77 percent and trading was halted
  • Recovery was quick, though, because the reason for the fall had nothing to do with Korean company results

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.