The transmission of policy decisions to financial markets is an integral part of the monetary transmission mechanism. However, one of the major problems in estimating the effect of monetary policy on asset prices is the simultaneous response of policy actions and the asset prices to each other....

This paper uses cluster analysis, a multivariate statistical technique to classify emerging stock markets that have similarities into different groups. A number of key market data such as number listed companies, market capitalization, trading volume, turnover ratio, percentage change in price...