Domestic Macroeconomic Fundamentals and World Stock Market Effects on ASEAN Emerging Markets

12 Pages Posted: 31 Aug 2009 Last revised: 18 Jan 2013

Date Written: August 27, 2009

Abstract

Liberalization and globalization of world markets have resulted in inter-relatedness of financial markets and contagion global events. Numerous examples of stock market crashes, currency crisis and the recent sub-prime crisis have affected financial performances of markets across the globe. In the recent decade, waves of speculative activities are not limited to one market only but they can move from one corner of the globe to another within hours. This research investigates the effects of domestic macroeconomic fundamentals and world stock market on the domestic financial market performances of ASEAN emerging nations. Findings show that domestic economic growth, interest rate, and exchange rates are significant in affecting domestic financial markets. Dow Jones Industrial Average as a proxy for world stock market is also found to have significant positive relationship with the more developed financial market in Singapore.

Keywords: Financial market performance, International financial markets, Macroeconomic fundamentals

JEL Classification: D53, E44. F41, G15

Suggested Citation

Ho, Catherine S. F., Domestic Macroeconomic Fundamentals and World Stock Market Effects on ASEAN Emerging Markets (August 27, 2009). 22nd Australasian Finance and Banking Conference 2009. Available at SSRN: https://ssrn.com/abstract=1463164 or http://dx.doi.org/10.2139/ssrn.1463164

Catherine S. F. Ho (Contact Author)

Universiti Teknologi MARA ( email )

Faculty of Business Management
Shah Alam, Selangor 40450
Malaysia
603-5544-4792 (Phone)

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