Reactions of stock returns to asymmetric changes in exchange rates and oil prices

When an economy does well as a result of crude oil proceeds, it is expected that its financial market records boost. So, when the regresses due to fluctuations in prices, also reacts tandem. To shed light on uninterrupted fluctuations, we empirically estimated effect changes exchange rates and prices stock returns developing countries using nonlinear autoregressive distributed lag (NARDL) methodology. Results reveal 1 percent negative shock rate diminished significantly by 1.015 2.191 for Egypt Nigeria respectively whereas, Tunisia, Morocco, Tanzania, increased 0.118 percent, 0.176 1.145 respectively. For every positive Egypt, Nigeria, declined 1.012 1.04 0.015 0.112 0.214 A price negatively influences 0.02 0.05 0.18% 1.09 0.25 Tanzania while stimulated 1.02 0.128 0.199 1.029 0.091 Different policy reaction functions should be executed differently depreciation, appreciation, enhance favorable flow markets