Which 1997 crisis caused major stock-market crashes across Thailand, Indonesia, South Korea, and other Asian economies?

The 1997 crisis that caused major stock-market crashes across Thailand, Indonesia, South Korea, and other Asian economies was the Asian financial crisis.

The crisis began in Thailand after the baht came under intense pressure and was allowed to float on July 2, 1997. The devaluation exposed heavy foreign-currency debts and weaknesses in banks and corporations. Investors then withdrew capital from several economies across the region.

Stock markets and currencies fell sharply, while companies struggled to repay dollar-denominated loans. The International Monetary Fund organized assistance programs for Thailand, Indonesia, and South Korea, typically tied to financial and structural reforms.

The crisis spread beyond Asia, contributing to turbulence in Russia and Brazil and to the collapse of the hedge fund Long-Term Capital Management in 1998. It is often described as a currency and financial crisis as well as a stock-market crash because exchange-rate and banking failures were central to the story.