THE EFFECT OF MACROECONOMIC INDICATORS ON STOCK MARKET: A STUDY ON ASIAN ECONOMIES

Mansoor Alam Khan, Riaz Ahmad, Dr. Muhammad Akram and Hafiz Muhammad Ishaq
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Mansoor Alam Khan: Assistant Manager Finance, Iftekhar Ahmed & Co.Karachi Pakistan.m.mansooralamkhan@gmail.com
Riaz Ahmad: Faculty of business administration, Iqra University Karachi, Pakistan
Dr. Muhammad Akram: Faculty of Business School, Bahria University, Islamabad, Pakistan
Hafiz Muhammad Ishaq: Assistant professor, Federal Urdu University of Arts, Science and Technology Islamabad, Pakistan

Bulletin of Business and Economics (BBE), 2021, vol. 10, issue 1, 114-127

Abstract: The current study objective is to investigate the effect of four macroeconomic indicators namely gold price, crude oil price, rate of foreign exchange and inflation on the Asian stock markets. For this objective, the yearly panel data of the ten Asian economies from year 2007 to 2020 was collected. The random effect model analysis led to the conclusion that the price of gold has a positive and significant effect on the stock market whereas the price of crude oil and inflation have a negative and significant effect on the stock markets of Asian countries. Furthermore, the relationship of exchange rate along with Asian stock markets was found positive but insignificant. This study is considered quite beneficial for prediction of stock market performance. Hence, both policy makers and investors can benefit from the findings. For researchers and students, the extended framework of this research contributes immensely towards the existing literature on the subject.

Keywords: Stock Market; Foreign Exchange; Gold Price; Inflation; Crude Oil (search for similar items in EconPapers)
Date: 2021
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