Volatility spillovers across stock index futures in Asian markets : Evidence from range volatility estimators

Larisa Yarovaya, Janusz Brzeszczyński, Chi Keung Marco Lau

    Research output: Contribution to journalArticlepeer-review

    22 Citations (Scopus)

    Abstract

    This paper investigates the channels of volatility transmission across stock index futures in 6 major developed and emerging markets in Asia. We analyse whether the popular volatility spillovers tests are susceptible to the choice of range volatility estimators. Our results demonstrate strong linkages between markets within the Asian region, indicating that the signal receiving markets are sensitive to both negative and positive volatility shocks, which reveals the asymmetric nature of volatility transmission channels. We find that some markets play a destabilizing role while other countries - contrary to popular belief - have a stabilizing effect on other markets in Asia.

    Original languageEnglish
    Pages (from-to)158-166
    Number of pages9
    JournalFinance Research Letters
    Volume17
    DOIs
    Publication statusPublished - 1 May 2016

    Bibliographical note

    Publisher Copyright:
    © 2016 Elsevier Inc.

    Copyright:
    Copyright 2016 Elsevier B.V., All rights reserved.

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