The macroeconomic variables of Malaysia, Indonesia and Singapore and their relationship with the United States stock market index / Fawwaz Muhammad

A stock market index is a form of a portfolio investment that is part of in the financial market. Stock market index is crucial for investors to determine the changes in the market. Furthermore, it also acts as a reference for investors to measure the company performance which will also influence the stock price. Hence, investors are able to diversify their investments in order to minimize the risk and also measure a specific sector and the market. The main objective of this research paper is to detect any relationship between the macroeconomic variables of the selected ASEAN countries which is Malaysia, Indonesia and Singapore and the stock market index in United States specifically the Dow Jones Index. The macroeconomic variables that have been choose in this research paper is Gross Domestic Product, Real Interest Rate, Unemployment Rate, Balance of Trade and Consumer Price Index which will act as the independent variables in this study. Other than that, this research paper has use fifteen (15) years of time frame which is from 2005 until 2020. The raw data that has been collected is taken from a reliable source such as Trading Economics, World Bank Open Data, Macro Trends and Market Watch. In addition, this study has used the panel data method which the data are used to frame the model by using the same subjects for each different time in order to measure the observation. Lastly, the findings in this research paper have concluded that independent variables such as Gross Domestic Product, Real Interest Rate, Balance of Trade and Consumer Price Index has a significant relationship with the Dow Jones Index while independent variables such as Unemployment Rate shows that there is no significant relationship between the variables and the Dow Jones Index.