INTEREST, EXCHANGE, AND INFLATION RATE AND STOCK PRICE IN ASIA COUNTRIES

This paper empirically investigates the relationship between macroeconomic variables namely the Interest rate, Inflation and Exchange rate on Stock price towards ASIA countries. Based from the past researchers studies the results shows that the macroeconomic fundamental have a significant impact towards the Stock price. This study uses annual data from 2009-2018 (10 years) on ten ASIA Countries, Malaysia, Thailand, Vietnam, Philippines, Singapore, India, Russia, South Korea, Japan and Qatar. The preliminary results by using Multiple Regression test to determine the significant impact between macroeconomic variables (inflation, interest rate and exchange rate) and stock prices. The result shows that only exchange rate does give significant impact on stock price. As for the investors, although the stock market is mainly influenced by economic effects and announcements, the investors can now consider the market size as a factor that will affect the stock returns. The smaller the market size, the greater the stock returns. A better result on this research could be found by employing more sample of study, gather more observation and include more variables such as market risk and systematic risk. (C) 2020 Published by European Publisher.