Which 1997 currency crisis spread from Thailand and triggered major Asian stock-market falls?

The 1997 currency crisis that spread from Thailand and triggered major Asian stock-market falls was the Asian financial crisis.

Thailand abandoned its fixed exchange rate for the baht on July 2, 1997, after intense pressure on its foreign-exchange reserves. The baht then fell sharply, and investors began reassessing other economies across East and Southeast Asia.

The crisis affected Indonesia, South Korea, Malaysia, and the Philippines especially severely. Stock markets plunged, currencies depreciated, companies struggled with foreign-currency debts, and several banking systems required emergency support. The International Monetary Fund arranged major assistance programs, including a large package for South Korea.

The crisis was not simply a stock-market event. It involved exchange-rate regimes, short-term foreign borrowing, property and investment booms, weak financial supervision, and sudden reversals of international capital. Hong Kong’s currency peg survived, although its stock market experienced extreme volatility. Russia later suffered its own financial crisis in 1998, partly amid continuing international market stress.