STOCK-MARKET INTERDEPENDENCIES - EVIDENCE FROM THE ASIAN NIES

National asset markets have become more integrated in recent years. Th is paper investigates the interrelationship, if any, among the stock m arkets in four newly industrialized economies (NIEs) in Asia. The resu lts indicate that a significant link exists between the stock markets of Hong Kong and Singapore and those of Japan and the United States. O n the other hand, the markets with severe restrictions on cross-countr y investing, that is, Korea and Taiwan, are not responsive to innovati ons in foreign markets. Finally, the United States stock market influe nces, but is not influenced by, the four Asian markets.