Responses of macroeconomy and stock markets to structural oil price shocks: new evidence from Asian oil refinery

In extensive oil-related literature, less attention has been paid to Asia and particularly little evidence is known for oil-refining countries. This paper examines how the economy of an country reacts oil price shock performs cross-country comparisons with oil-exporting oil-importing Singapore (oil refiner), Japan importer), Malaysia exporter) are analysed through a structural vector autoregression (SVAR) model using both macroeconomic financial variables. Results show limited reactions indicators stock returns supply shock, aggregate demand negatively impacts economic activities. Our findings reveal that country's status in market important when oil-specific analysed. inform policymakers effectiveness monetary policy tools such as interest rate exchange mitigate adverse effects shock.