The Korean Kospi tanked at the close of trading today, in what could a be stark warning of things to come in Asian markets.
The index plunged, closing down nearly 2.7%, as a result of a combination of options expiry and a single sell order from a European bank at close, according to FT Alphaville [http://ftalphaville.ft.com/blog/2010/11/11/401566/a-kospi-conundrum/].
This perhaps shows the vulnerability of emerging market indices to extreme movements. That being said, such “flash crashes” can happen anywhere. This one just happened to happen at the close of the market.
The Kospi, from Bloomberg. Note the dramatic fall at the end of trading.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.