What triggers market jitters: a chronicle of the Asian crisis
Graciela Kaminsky () and
Sergio Schmukler ()
No 634, International Finance Discussion Papers from Board of Governors of the Federal Reserve System (U.S.)
In the chaotic financial environment of Asia in 1997-1998, daily changes in stock prices of about 10 percent became commonplace. This paper analyzes what type of news moves the markets in those days of market jitters. We find that movements are triggered by local and neighbor-country news, with news about agreements with international organizations and credit rating agencies having the most weight. However, some of those large changes cannot be explained by any apparent substantial news, but seem to be driven by herd instincts of the markets itself. The evidence suggests that investors over-react to bad news.
Keywords: Financial markets; Asia (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-fmk, nep-his and nep-pke
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (203) Track citations by RSS feed
Downloads: (external link)
Journal Article: What triggers market jitters?: A chronicle of the Asian crisis (1999)
Working Paper: What triggers market jitters? A chronicle of the Asian crisis (1999)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgif:634
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in International Finance Discussion Papers from Board of Governors of the Federal Reserve System (U.S.) Contact information at EDIRC.
Bibliographic data for series maintained by Ryan Wolfslayer ().