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Corona Pandemic and Stock Market Behaviour: Empirical Insights from Selected Asian Countries

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  • P. K. Mishra
  • S. K. Mishra

Abstract

On the onset of the year 2020, the unprecedented outbreak of novel coronavirus, initially as a human health epidemic and later as a global pandemic, has wobbled the economies of affected countries across the globe. The consequential unexpected occurrences of supply- and demand-side shocks forced the economies to trim down their growth prospects. The interplay of these shocks has generated spirals of downturns in all major economic sectors, including the financial sector in affected countries. Specifically, the stock markets immediately nosedived, following the outbreak of the global spread of coronavirus disease 2019 (COVID-19). Thus, we examine the behaviour of the selected Asian stock markets amid the huge uncertainties of the corona pandemic and find the occurrences of volatility clustering in these markets. Such volatility clustering primarily occurred, owing to the pessimistic and panic sentiments of investors, and the increase in the number of COVID-19 confirmed cases, changes in oil prices, and exchange rates were found to be significant in channelizing the fears and uncertainties of coronavirus pandemic to cause unexpected nosedives in Asian stock markets.

Suggested Citation

  • P. K. Mishra & S. K. Mishra, 2020. "Corona Pandemic and Stock Market Behaviour: Empirical Insights from Selected Asian Countries," Millennial Asia, , vol. 11(3), pages 341-365, December.
  • Handle: RePEc:sae:millen:v:11:y:2020:i:3:p:341-365
    DOI: 10.1177/0976399620952354
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    Cited by:

    1. Krishnadas M. & K. P. Harikrishnan & G. Ambika, 2022. "Recurrence measures and transitions in stock market dynamics," Papers 2208.03456, arXiv.org.
    2. Asima Saleem, 2022. "Action for Action: Mad COVID-19, Falling Markets and Rising Volatility of SAARC Region," Annals of Data Science, Springer, vol. 9(1), pages 33-54, February.
    3. Hartono, 2021. "Developing country stock market immunity during Covid-19 pandemic," Technium Social Sciences Journal, Technium Science, vol. 18(1), pages 222-229, April.
    4. M., Krishnadas & Harikrishnan, K.P. & Ambika, G., 2022. "Recurrence measures and transitions in stock market dynamics," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 608(P1).
    5. Wenbo Wang & Hail Park, 2021. "How Vulnerable Are Financial Markets to COVID-19? A Comparative Study of the US and South Korea," Sustainability, MDPI, vol. 13(10), pages 1-18, May.
    6. Boubaker, Sabri & Goodell, John W. & Pandey, Dharen Kumar & Kumari, Vineeta, 2022. "Heterogeneous impacts of wars on global equity markets: Evidence from the invasion of Ukraine," Finance Research Letters, Elsevier, vol. 48(C).
    7. P. K. Mishra & S. K. Mishra, 2022. "Is the Impact of COVID-19 Significant in Determining Equity Market Integration? Insights from BRICS Economies," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 14(2), pages 137-162, May.
    8. Celso-Arellano, Pedro & Gualajara, Victor & Coronado, Semei & Martinez, Jose N. & Venegas-Martínez, Francisco, 2023. "Impact of the global fear index (covid-19 panic) on the S&P global indices associated with natural resources, agribusiness, energy, metals and mining: Granger Causality and Shannon and Rényi Transfer ," MPRA Paper 117138, University Library of Munich, Germany, revised 06 Feb 2023.
    9. Khurram Shehzad & Umer Zaman & Xiaoxing Liu & Jarosław Górecki & Carlo Pugnetti, 2021. "Examining the Asymmetric Impact of COVID-19 Pandemic and Global Financial Crisis on Dow Jones and Oil Price Shock," Sustainability, MDPI, vol. 13(9), pages 1-13, April.

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