The Influence of Japanese Earthquake on Global Stock Markets

The main focus of this paper is to study the impact of Japanese Earthquake on the behavior of global stock markets. As to natural catastrophes, the negative impact is more often observed in the post-event period. We select 11 major stock indexes from Asia, Europe and America and implement our analysis, which uses some methods such as ordered clustering method; hierarchical clustering method; regression analysis, to demonstrate characteristics of global stock market fluctuation. Based on the continuity of time, ordered clustering method is introduced to obtain turning points of fluctuation in this paper. Furthermore, detailed information during the period of before and after the earthquake is extracted to classify the composite indexes applying hierarchical clustering analysis. The results of our analysis show that the 11 stock index sample is classified into 4 groups. Further, we gain the certain different effects of the earthquake on the global stock market.