Relation between Macroeconomic Variables and ASEAN Stock Index

  • Farah Amira Mohamed Nasser Universiti Teknologi MARA (UiTM) Terengganu
  • Che Mohamad Asyraf Che Rosid Universiti Teknologi MARA (UiTM) Terengganu
  • Nurul Syuhada Baharuddin Universiti Teknologi MARA (UiTM) Terengganu

Abstract

The changes in macroeconomic variables can give an effect to the fluctuation in securities trade. This phenomenon will surely give impact to the stock market index and will resulting in more trading occurred in the stock exchange market. Therefore, this study investigates the impact of macroeconomics variables to the stock index for ASEAN countries. The relationships between stock index and several macroeconomics variables are analyzed for five ASEAN countries including Malaysia, Singapore, Indonesia, Philippines and Thailand. Five macroeconomics variables which are gross domestic product, interest rate, inflation rate, exchange rate and unemployment rate are used to explain the variation of the stock index. Using yearly data and generalized least squares regressions, the results show strong significant relationships of all the macroeconomic variables to the stock index.


Keywords: stock index; gross domestic product; interest rate; inflation rate; exchange rate; unemployment rate

Author Biographies

Farah Amira Mohamed Nasser, Universiti Teknologi MARA (UiTM) Terengganu

Faculty of Business and Management, Universiti Teknologi MARA (Terengganu),
23000 Dungun, Terengganu, Malaysia

Che Mohamad Asyraf Che Rosid, Universiti Teknologi MARA (UiTM) Terengganu

Faculty of Business and Management, Universiti Teknologi MARA (Terengganu),
23000 Dungun, Terengganu, Malaysia

Nurul Syuhada Baharuddin, Universiti Teknologi MARA (UiTM) Terengganu

Faculty of Business and Management, Universiti Teknologi MARA (Terengganu),
23000 Dungun, Terengganu, Malaysia

Published
2018-01-09
How to Cite
MOHAMED NASSER, Farah Amira; CHE ROSID, Che Mohamad Asyraf; BAHARUDDIN, Nurul Syuhada. Relation between Macroeconomic Variables and ASEAN Stock Index. Terengganu International Finance and Economics Journal (TIFEJ), [S.l.], v. 5, n. 1, jan. 2018. ISSN 2232-0539. Available at: <http://myjms.mohe.gov.my/index.php/tifej/article/view/3170>. Date accessed: 21 oct. 2018.
Section
Articles