Which 1997 currency crisis spread from Thailand to stock markets across much of Asia?

The Asian financial crisis spread from Thailand to stock markets across much of Asia in 1997.

Thailand was forced to abandon its baht’s fixed exchange-rate regime on July 2, 1997, after heavy pressure on its currency and dwindling foreign-exchange reserves. The baht’s devaluation triggered concern about other economies with large foreign-currency debts, vulnerable banks, and overheated property markets.

Financial stress spread to Indonesia, South Korea, Malaysia, and the Philippines, among others. Stock markets fell, currencies depreciated, companies failed, and output contracted. The International Monetary Fund arranged assistance programs for several affected countries, often tied to financial and structural reforms.

The crisis is distinct from Mexico’s 1994–95 Tequila Crisis and Russia’s 1998 crisis, although investors treated emerging markets as increasingly interconnected. Its starting point is most commonly identified with Thailand’s currency devaluation.