Thailand was the first country to experience a stock-market crash during the 1997 Asian financial crisis.
The crisis began with pressure on Thailand's baht and financial system. On July 2, 1997, Thailand abandoned its fixed exchange-rate regime and allowed the baht to float after authorities struggled to defend it. The currency then fell sharply, exposing weaknesses in banks and heavily indebted companies.
Financial stress spread across East and Southeast Asia. Indonesia, South Korea, Malaysia, and other economies experienced currency collapses, falling share prices, corporate failures, and banking crises. International assistance, including a major International Monetary Fund program for South Korea, became part of the response.
Thailand is sometimes described as the place where the crisis began, but the shock was regional rather than confined to one market. The stock-market effects were closely linked to currency and debt problems, especially foreign-currency borrowing.