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Asian Journal of Research in Banking and Finance
Year : 2017, Volume : 7, Issue : 10
First page : ( 1) Last page : ( 10)
Online ISSN : 2249-7323.
Article DOI : 10.5958/2249-7323.2017.00114.6

Interlinkages of Asian and US Stock Market: A Study of selected Indices

Mohanty Sushil1, Dr. Pathak Priyanka2

1S V Institute of Management, Kadi, Gujarat, India. sushilsmohanty@gmail.com

2L J Institute of Management Studies, Ahmedabad, Gujarat, India. priyankaat@gmail.com

Online published on 11 October, 2017.

Abstract

This paper investigates the inter-linkages among the selected indices, viz. NYSE (USA), Nikkei 225 (Japan) and emerging stock markets Shanghai Composite Index (China), Hang Seng (Hong Kong), Kospi (Korea) and BSE30 (India). This study covers the period from July 1997 to December 2014. The ADF test is applied to check the stationarity of the data and the cointegration among the stock indices is studied by applying the Johansen Cointegration Test. Granger causality test it is being applied to understand the lead-lag effect among the stock markets. The ARCH-LM test checks the arch effect in the residuals of the data and the volatility within the indexes is measured with the help of the GARCH.

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Keywords

Stock market integration, Cointegration, Granger causality, GARCH, ARCH-Lagrange Multiplier.

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