Abstract:
The purpose of this research is to find any integration between Stock Market of Pakistan and other Asian Stock Markets i.e. to see that are the co movements in the Asian Stock Markets because of influencing changes in other Asian countries. Asian countries which are included in this research are Iran, Hong Kong, Indonesia, India and Japan, these Asian countries are selected due to the fact ,so they can cover the whole Asian territories i.e. South Asia, East Asia, Central Asia, West Asia, South East Asia. Johansen Co integration analysis would be used to check the integration among the stock market of Asian countries. This research would be valuable for the portfolio investors who wants to diversify their portfolio risk by investing in other than their own stock market. The results of the analysis through Bi variate and Multivariate Co integration shows that Pakistani Stock Market is not integrated with the Asian stock markets. This means that Pakistan and Asian Stock Market Investors could take benefit from this opportunity and invest in each other markets
