Macroeconomic determinants of stock markets performance: evidence from Asian Pacific stock markets / Muhamad Norfaafiffi Mazlan

This paper is aims to examine the relationship between macroeconomics variables and stock performances. This study will focus the panel data of five selected Asian Pacific stock markets which are China, Japan, Malaysia, India and South Korea. The dependent variable is stock index and the independent variables are money supply (m2), interest rate and exchange rate. The data from the sample taken are pooled for 16 years (2000-2016) across of five selected of country in Asian Pacific. The data was obtained from the DataStream and World Bank Databank. This research used quantitative secondary data and the researcher employs the panel data analysis approach using pooled OLS method. The panel data methodology is used in situations where there are data observed in quarterly period where are there are about 340 observations. The research finds that money supply and interest rate affects positively to the stock market. Meanwhile exchange rate affects negatively and significant relationship to the stock market.