Which financial crisis triggered the 1997 collapse of stock markets across much of East and Southeast Asia?

The Asian financial crisis triggered the 1997 collapse of stock markets across much of East and Southeast Asia. It began with pressure on Thailand's currency and intensified after Thailand floated the baht on July 2, 1997, ending its effective peg to the U.S. dollar.

Investors then questioned other economies whose currencies were linked to the dollar, whose companies had borrowed heavily in foreign currencies, or whose financial systems were vulnerable. Capital fled, currencies depreciated, stock markets plunged, and companies found their dollar debts far more expensive to repay. Indonesia, South Korea, Malaysia, and the Philippines were among the countries seriously affected.

The crisis was not simply a stock-market event. Currency devaluations, banking failures, corporate debt, and international rescue programs were central features. The International Monetary Fund arranged major assistance packages, particularly for Thailand, Indonesia, and South Korea. Hong Kong defended its currency and stock market under intense pressure, while China avoided devaluing the renminbi.