Lower the correlation between the return on the market, then good opportunity for the

diversification.

Financial market integration means going beyond the border of a national market for the
higher return on investment oppurtunities and diversifying risks.

Factors supporting integration

Importance of integration

LEVEL OF INTEGRATION

Domestic - Correlation of various financial markets – money markets, treasury bills,

government bonds, equity markets, credit market

Regional

Global

The benefits of all level of integration.

The risk of all level of integration

The purpose of my research study is not to explain in details this mechanism but to overview
the factors and explain why they have an influence and how the market is function of them.

Sm-07-87 (forex market, theories and practices)

Topics
A study of stock market co-integration of ASEAN economies with emerging two giant
economies of the world India and China along with South Korea and Japan.

Indonesia stock exchange - http://www.idx.co.id/

Singapore exchange - http://www.sgx.com/wps/portal/marketplace/mp-en/home

The Philippine stock exchange, Inc. - http://www.pse.com.ph/

Bursa Malaysia - http://www.klse.com.my/website/bm/

The stock exchange of Thailand - http://www.set.or.th/en/index.html

Brunei

Cambodia

Laos

Hochiminh stock exchange - http://www.hsx.vn/hsx_en/default.aspx

Myanmar

National stock exchange of India Limited - http://www.nseindia.com/

China stock market - http://www.chinastockmarket.org/

The data is already available from the study made by Asian Development Bank

http://aric.adb.org/indicator.php (we can find correlation and differential of FDI, money and
finance indicator from this website between these countries from last 10 years.)

for example : stock market return correlation can be viewed in

http://aric.adb.org/indicators.php?
sort=country&filter=all&r_indicators[]=MRMSCORR_BLM&r_reporters[]=China
%2C+People
%27s+Republic+of&r_reporters[]=India&r_reporters[]=Indonesia&r_reporters[]=Malaysia&
r_reporters[]=Philippines&r_reporters[]=Singapore&r_reporters[]=Thailand&r_reporters[]=
Viet+Nam&r_partners[]=China%2C+People
%27s+Republic+of&r_partners[]=India&r_partners[]=Indonesia&r_partners[]=Malaysia&r_
partners[]=Philippines&r_partners[]=Singapore&r_partners[]=Thailand&r_partners[]=Viet+
Nam&r_years[]=2000&r_years[]=2001&r_years[]=2002&r_years[]=2003&r_years[]=2004&
r_years[]=20
money market rate correlation can be viewed in

http://aric.adb.org/indicators.php?
sort=country&filter=all&r_indicators[]=MRMMCORR_BLM&r_reporters[]=China
%2C+People
%27s+Republic+of&r_reporters[]=India&r_reporters[]=Indonesia&r_reporters[]=Malaysia&
r_reporters[]=Philippines&r_reporters[]=Singapore&r_reporters[]=Thailand&r_reporters[]=
Viet+Nam&r_partners[]=China%2C+People
%27s+Republic+of&r_partners[]=India&r_partners[]=Indonesia&r_partners[]=Malaysia&r_
partners[]=Philippines&r_partners[]=Singapore&r_partners[]=Thailand&r_partners[]=Viet+
Nam&r_years[]=2000&r_years[]=2001&r_years[]=2002&r_years[]=2003&r_years[]=2004&
r_years[]=2005&r_years[]=2006&r_years[]=2007&r_years[]=2008&r_years[]=2009