Which 1997 currency crisis spread through East Asian stock markets after Thailand devalued the baht?

The 1997 currency crisis that spread through East Asian stock markets after Thailand devalued the baht was the Asian financial crisis.

Thailand abandoned its fixed exchange-rate regime on July 2, 1997, allowing the baht to float after intense pressure on its foreign-exchange reserves. The baht then lost substantial value, and investors reassessed other economies with high foreign-currency debt and fragile financial systems.

The crisis spread to Indonesia, South Korea, Malaysia, and other economies. Stock markets fell sharply, companies struggled to repay dollar-denominated loans, and several countries sought assistance from the International Monetary Fund.

Hong Kong maintained its currency peg, but its stock market suffered a major decline. The crisis was not simply a stock-market crash: currency devaluations, banking problems, property speculation, and international capital flows all played central roles.