Modelling The Relationships Between US And Selected Asian Stock Markets.

Abstract

It is well known that many countries around the world depend on the US as their major trade partner. As a result, if something does happen to US economy it surely will affect the economy of all these countries. In this paper, we investigate the relationship between the US and four Asian emerging stock markets namely Hong Kong, India, South Korea and Malaysia using monthly data between 1996 and 2008. We are going to use two approaches to model the relationship.