KOSPI · August 5, 2024
The Yen Carry Unwind — KOSPI
-8.77%
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?
- 5 August 2024 — KOSPI fell 8.77%, the same day the Nikkei 225 dropped sharply
- The link was the yen carry trade. Money borrowed cheaply in Japan and invested elsewhere had accumulated for years, and some sat in Korean equities
- When the Bank of Japan raised rates and the yen surged, that money was recalled at once
- The defining feature: the reason for selling had nothing to do with Korean companies' earnings. Only the price of the funding currency had changed
- Stopped at 16.41% from peak with a quick recovery
- Because the cause wasn't inside Korea
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.