Copper’s Double-Edged Sword: Asymmetric Impact on Taiwan’s Stock Market

DOI: https://doie.org/10.0612/nerj.2024950723

Ilia Tetin, Guych Nuryyev

Keywords:

Asymmetry, Commodity Prices, Stock Market Returns, Taiwan, NARDL JEL classification: F41, G10, C32

Abstract:

This paper provides empirical evidence of asymmetric impacts of copper futures on Taiwan’s stock indices. Using the Nonlinear Autoregressive Distributed Lag model, we reveal that initially negative impact of copper futures transitions into positive influence in the long term. Lithium prices contribute to short-term dynamics with inconsistencies and lagged effects but do not have significant long-term influence.

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