Which 1997 regional market crash began in Thailand before spreading across East Asia?

The 1997 regional market crash that began in Thailand and spread across East Asia was the Asian financial crisis.

Thailand’s government abandoned the baht’s fixed exchange-rate regime on July 2, 1997, after intense pressure on its foreign-exchange reserves. The baht then depreciated sharply, and investors reassessed other Asian economies with substantial foreign-currency borrowing, property bubbles, and fragile financial systems.

Contagion reached Indonesia, South Korea, Malaysia, and other markets. Stock prices and currencies fell, companies struggled to repay dollar-denominated debt, and banks required restructuring. The International Monetary Fund arranged major assistance packages for several affected countries, including Thailand, Indonesia, and South Korea.

The crisis is sometimes called the Asian currency crisis because exchange-rate collapses were central to it, but stock markets also suffered severe declines. It was not confined to one country or one exchange. Recovery differed by economy, with reforms and international support helping stabilize the region.