This study is aimed to examine the impact of US News and exchange rate exposure on emerging economies of Pakistan, China, Turkey and Iran. Daily exchange rates have been used for the period Jan 1, 2003 to Dec 31, 2018 to identify the volatility in exchange rate exposure due to news effect. US News is modeled with variance equation respectively for each country exchange rate. GARCH (1,1) by Bollerslev (1986), and EGARCH (1,1) by Nelson (1991) models have been used to estimate the volatility of exchange rate dynamics. Results indicate that impact of US News is significantly positive on the exchange rate of Pakistan and China and the results of US news impact on Turkey and Iran are insignificant. Present study is helpful for investors, financial analysts and economic decision makers for understanding the changing dynamics of exchange rate volatility.

The study examines the volatility spillover between selected emerging Asian and developed stock markets. Moreover, the study analyzes the impact of the financial crisis on volatility spillover between the stock markets. This study used monthly observations for the period 2001-01 to 2017-12 on three emerging markets of Pakistan, China, India and three developed markets of Hong Kong, Japan and the US. First, the asymmetric volatility transmission between the stocks is analyzed by extended EGARCH representation. The study found the existence of asymmetric volatility spillovers throughout the financial crisis. The researcher estimated the VECM granger causality test in the next step. The outcomes revealed existence of bidirectional spillover between Pakistan and India, the US to Japan and Hong Kong. Unidirectional relationship was found from Pakistan and the US to Hong Kong, India to the US and Hong Kong to China. Overall, the results suggest a significant relationship between emerging and developed markets due to integration.