Does the Weather Influence Asia’s Top Stock Market Returns?

Abstract

This study investigates the relationship between weather patterns and stock market returns across major Asian economies from 2000 to 2023. Drawing on monthly index data from nine prominent Asian stock exchanges, the research categorizes weather into hot, wet, and dry seasons to analyze their impact on market performance. Utilizing descriptive statistics, correlation analysis, and two-way ANOVA, the study finds that while weather conditions do not significantly influence average stock returns, country-specific factors play a crucial role in determining market outcomes. The findings suggest that variations in investor behavior and local economic conditions outweigh the impact of seasonal weather changes on Asian stock markets. This research contributes to understanding the complexities of market dynamics in Asia, offering insights that can inform investment strategies and policy decisions in the region.