Energy Market Dynamics and Emerging Equity Markets: Insights from A Wavelet-Based Time–Frequency Analysis

  • Authors

    • Sourav Sharma Research Scholar, Mittal School of Business, Lovely Professional University, Punjab, India
    • Dr. Rupinder Katoch Professor in Accounting and Law, Mittal School of Business, Lovely Professional University, Punjab, India
    https://doi.org/10.14419/4cdt1t05

    Received date: September 16, 2025

    Accepted date: November 1, 2025

    Published date: November 7, 2025

  • Natural Gas; Emerging Markets; Wavelet Coherence; Spillover Effects; Crisis

  • Abstract

    This study explores the dynamic, time-frequency relationship between international natural gas ‎prices and the equity markets of 23 emerging economies across the APAC, EMEA, and ‎Americas regions. Using wavelet coherence analysis, the research examines how market ‎interactions evolve across different time horizons, with a particular focus on major global ‎crises, including the COVID-19 pandemic and the Russia-Ukraine War. The findings reveal a ‎stark bifurcation fundamentally driven by each nation's net energy trade position. For major ‎gas-exporting nations, such as Qatar, Indonesia, and Mexico, a strong in-phase coherence is ‎identified, where natural gas prices act as a positive leading indicator for equity markets, ‎particularly in the medium- to long-term. Conversely, in major gas-importing economies, ‎including China, South Korea, and European nations like Poland, a powerful anti-phase ‎coherence dominates, with gas prices serving as a negative leading indicator, especially in the ‎short- to medium-term. The analysis confirms that geopolitical shocks, particularly the Russia-Ukraine War, significantly amplify these co-movements, solidifying natural gas as a primary ‎channel for financial risk transmission. The study concludes that natural gas plays a strategic ‎financial role, offering predictive insights for risk mitigation and strategic portfolio allocation ‎across emerging markets‎.

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  • How to Cite

    Sharma, S. ., & Katoch , D. R. . (2025). Energy Market Dynamics and Emerging Equity Markets: Insights from A Wavelet-Based Time–Frequency Analysis. International Journal of Accounting and Economics Studies, 12(7), 267-276. https://doi.org/10.14419/4cdt1t05