Which 1997 crisis caused stock markets across East and Southeast Asia to plunge and currencies to lose value?

The 1997 crisis that caused stock markets across East and Southeast Asia to plunge and currencies to lose value was the Asian financial crisis.

The crisis began in Thailand when the baht came under intense pressure and Thailand abandoned its currency peg on 2 July 1997. Investors then reassessed risks throughout the region. Indonesia, South Korea, Malaysia, and other economies experienced currency collapses, capital flight, falling equity prices, and severe financial stress.

Large foreign-currency debts, fixed or managed exchange rates, property and asset bubbles, weak financial regulation, and short-term borrowing made several economies vulnerable. The International Monetary Fund arranged assistance programs, including a major package for South Korea, but the rescue conditions were controversial.

The crisis was not limited to stock exchanges: currencies, banks, companies, and national economies were all affected. Russia later defaulted in 1998, and Brazil faced pressure, but those events were connected spillovers rather than the original Asian crisis itself.