The Asian financial crisis that triggered major stock-market crashes across East Asia began in 1997.
The crisis became especially visible when Thailand abandoned its exchange-rate peg to the U.S. dollar on 2 July 1997. The baht then depreciated sharply, and pressure spread through countries whose currencies, banks, companies, or stock markets were exposed to foreign-currency debt and rapid capital outflows.
Indonesia, South Korea, Malaysia, and the Philippines were among the economies heavily affected. Equity markets plunged, currencies lost value, businesses struggled to repay dollar-denominated loans, and several governments accepted assistance from the International Monetary Fund and other institutions.
The crisis is often called the Asian financial crisis, but it did not affect every Asian economy in the same way. China largely maintained its currency position, while Japan was already dealing with the aftermath of its own asset-price bubble. The episode showed how quickly modern financial markets could transmit pressure across borders.