The impact of COVID-19 on emerging stock markets

Topçu, Mert; GÜLAL>, Ömer Serkan

doi:10.1016/j.frl.2020.101691

Cited by 561 publications

(479 citation statements)

References 10 publications

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“…However, both models shows that the number of new deaths in China due to COVID-19 has no influence on the BET index return, respectively, on the Romania 10-year bond yield, neither in the short-term, nor in the long-term. Therefore, both research hypotheses are rejected for Chinese COVID-19 figures, similar Topcu and Gulal [86] which established that emerging European countries experienced the lowest influence of the outbreak. Tables 11 and 12 reveals the results of serial correlation and heteroscedasticity tests for the models Romania and COVID-19 (China)-new cases and Romania and COVID-19 (China)-new deaths.…”

Section: Ardl-the Number Of New Cases In Italy Due To Covid-19mentioning

confidence: 90%

“…Alber [85] showed that stock market return is influenced by COVID-19 cases more than deaths, as well as by aggregate measures more than new ones. However, attributable to local features, the influence of novel coronavirus may diverge across equity markets [86]. Onali [33] revealed that variations in the amount of cases and deaths in the USA and other highly impacted nations by the coronavirus do not influence stock market returns out of USA, except the number of cases for China.…”

Section: Earlier Studies Towards the Impact Of Covid-19 On Stock Marketsmentioning

confidence: 99%

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Stock Market Reactions to COVID-19 Pandemic Outbreak: Quantitative Evidence from ARDL Bounds Tests and Granger Causality Analysis

Gherghina

Armeanu

Joldeș

2020

IJERPH

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This paper examines the linkages in financial markets during coronavirus disease 2019 (COVID-19) pandemic outbreak. For this purpose, daily stock market returns were used over the period of December 31, 2019–April 20, 2020 for the following economies: USA, Spain, Italy, France, Germany, UK, China, and Romania. The study applied the autoregressive distributed lag (ARDL) model to explore whether the Romanian stock market is impacted by the crisis generated by novel coronavirus. Granger causality was employed to investigate the causalities among COVID-19 and stock market returns, as well as between pandemic measures and several commodities. The outcomes of the ARDL approach failed to find evidence towards the impact of Chinese COVID-19 records on the Romanian financial market, neither in the short-term, nor in the long-term. On the other hand, our quantitative approach reveals a negative effect of the new deaths’ cases from Italy on the 10-year Romanian bond yield both in the short-run and long-run. The econometric research provide evidence that Romanian 10-year government bond is more sensitive to the news related to COVID-19 than the index of the Bucharest Stock Exchange. Granger causality analysis reveals causal associations between selected stock market returns and Philadelphia Gold/Silver Index.

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Section: Ardl-the Number Of New Cases In Italy Due To Covid-19mentioning

confidence: 90%

Section: Earlier Studies Towards the Impact Of Covid-19 On Stock Marketsmentioning

confidence: 99%

Stock Market Reactions to COVID-19 Pandemic Outbreak: Quantitative Evidence from ARDL Bounds Tests and Granger Causality Analysis

Gherghina

Armeanu

Joldeș

2020

IJERPH

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“…This pandemic is having a serious effect on global economies. Every stock market in the world has been affected and the Asian countries have experienced more negative abnormal returns as compared to other countries (Liu et al, 2020;Topcu & Gulal, 2020;etc. ).…”

Section: Introduction I Introductionmentioning

confidence: 99%

The COVID-19 IMPACT on the ASIAN STOCK MARKETS

Gil-Alana

Claudio-Quiroga

2020

Asian Economics Letters

103

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In this note, we examine the impact that the COVID-19 crisis may have on the Asian stock markets by examining the statistical properties of three financial markets in Asia: namely, the Korean SE Kospi Index, the Japanese Nikkei 225, and the Chinese Shanghai Shenzhen CSI 300 Index. Using fractional integration methods, the results based on daily data indicate that mean reversion and thus transitory effects of shocks occur in the Nikkei 225 index. However, for the Kospi and Shanghai Shenzhen indices, this hypothesis is rejected, implying that shocks are permanent.

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“…As such, the COVID-19 outbreak has brought a significant deal of curiosity on its economic impact on the financial markets. howsa summary of related works (33)(34)(35)(36)(37)(38)(39)(40)(41)(42)(43)(44)(45)(46)(47) , specifically in the context of the economic effect of novel COVID-19 on the stock market. We categorised these studies based on the objectives, the period of the dataset and studied stock market.…”

Section: Introductionmentioning

confidence: 99%

The COVID-19 outbreak and effects on major stock market indices across the globe: A machine learning approach

Adekoya¹,

Nti²

2020

IJST

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Background/Objectives: The Coronavirus disease in 2019 (COVID-19) was first seen in Wuhan (capital of Hubei, Chain), and has since spread throughout the world, resulting in the World Health Organisation (WHO) declaring the 2019-20 coronavirus a pandemic. Its ongoing spread has resulted in a standstill of the world's economy, total lockdown in some counties, closedown of business and firms globally. As of 25 th Mar 2020, 11:00 am GMT, a total of 491,280 cases were reported globally. The evolution of COVID-19 and its economic impact on the regional financial markets are highly uncertain, which makes it difficult for legislators to formulate a suitable macroeconomic strategy response. Methods: To ascertain the possible economic impact of COVID-19 globally, this study examines the effect of COVID-19 on major stocks indices across the globe. Using a random sampling technique, we selected thirty (30) world stock market indices in different countries infected with COVID-19 from 31 st Dec 2019 to 25 th Mar 2020. However, not like a high percentage of previous studies that focus on the regional stock market, we examine the information on daily reported COVID-19 cases and stock market fluctuation over thirty stock market indices that houses the stock prices of several countries around the globe. Also, we estimate the monetary loss within the period, project the future surge of this pandemic on the stock market and outline some portfolio allocation strategies to help the investor hedge against investment risk. Findings: The experimental results in this study show that even a controlled outbreak of the COVID-19 can significantly influence the world's economy in both the short-term and longterm. Our obtained results of COVID-19 associated economic loss echoed in stock prices movements advise that the cost can escalate severely and quickly into global economic stress. Hence, we conclude by outlining some measure that might help investors hedge against such risk using portfolio allocation strategies.

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The impact of COVID-19 on emerging stock markets

Cited by 561 publications

References 10 publications

Stock Market Reactions to COVID-19 Pandemic Outbreak: Quantitative Evidence from ARDL Bounds Tests and Granger Causality Analysis

Stock Market Reactions to COVID-19 Pandemic Outbreak: Quantitative Evidence from ARDL Bounds Tests and Granger Causality Analysis

The COVID-19 IMPACT on the ASIAN STOCK MARKETS

The COVID-19 outbreak and effects on major stock market indices across the globe: A machine learning approach

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