KOSPI · June 20, 2013
The day tapering talk shook emerging markets
-2.00%
single-day change vs previous close
Part of a longer stretch
Six months of a cheap yen and money leaving
near the end of it · 2013-01-02 → 2013-06-25, -12.33% over the whole period
What happened that day?
- The KOSPI fell 2% on the day, near the bottom of this decline
- The day before, the Fed chair had said bond buying could start being reduced within the year
- When America slows the flow of money, funds that went into emerging markets leave all at once, because there is less reason to take risk when US interest rises
- India, Indonesia and Brazil were shaken hardest in this period — countries running current account deficits
- Korea was shaken less, running a surplus and holding ample reserves
- At the same time Japan's large-scale easing was weakening the yen, worsening the terms of competition in cars and machinery
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.