International Journal of Islamic and Middle Eastern Finance and Management, Journal Year: 2025, Volume and Issue: unknown

Published: April 8, 2025

Purpose The varying impacts of climate policy uncertainty on stock market performance have emerged as a critical research area, driven by the challenges that change poses to financial markets. This study seeks emphasize crucial role (CPU) in predicting fluctuation [Dow Jones Asia (ASIA), Dow Islamic (ISLAMIC) and NASDAQ OMX Clean Energy (CLEAN)] for period from 2018 2024. Design/methodology/approach paper uses three innovative techniques, including wavelet quantile regression, nonparametric causality regression. Findings results reveal exerts positive influence selected markets across various quantiles time scales. However, relationship between CPU ISLAMIC returns shows both negative associations. More importantly, exhibits predictive power over markets, indicating all frequencies. Practical implications These findings highlight importance investors pay more attention policies during current crisis. Originality/value To best authors’ knowledge, this is among first investigate time-frequency nexus predictability region. Specifically, authors use an three-stage methodology analyze Asian methods include wavelet-based quantile-on-quantile regression (QQR). technique identifies causal relationships their respective timeframes, while evaluates strength direction these interactions. Additionally, they explore how different distributions visualize effects using QQR 2D-plane graphics. robust provides valuable insights, making particularly relevant academic scholars, regulators, policymakers.

Language: Английский