Globalization increases integration among markets which provide room to taste fruit of higher profitability at lowest cost by holding diversified portfolios internationally. This study is conducted to identify stock markets from Asian Pacific region, for those investors who hold investment in Pakistani stock market and want to diversify their portfolios. Weekly data of closing stock market indices is used in study ranging from 1997 to 2014. Unit root test confirmed that all variables are stationary at first difference. Johnson Week co-integration is confirmed through Johnson Co-integration test, correlation analysis is performed to check short run association and granger causality for causality between markets. It is observed that week long term association is contagion effect of US subprime crisis. Result indicated that best possible options for short term investment are Japan, Taiwan and China. Bi-variate analysis confirmed that Japan, Hong Kong, Korea, Malaysia, Indonesia and Singapore are available options for portfolio diversification for long term horizon

Globalization increases integration among markets which provide room to taste fruit of higher profitability at lowest cost by holding diversified portfolios internationally. This study is conducted to identify stock markets from Asian Pacific region, for those investors who hold investment in Pak...