The study examines the volatility spillover between selected emerging Asian and developed stock markets. Moreover, the study analyzes the impact of the financial crisis on volatility spillover between the stock markets. This study used monthly observations for the period 2001-01 to 2017-12 on three emerging markets of Pakistan, China, India and three developed markets of Hong Kong, Japan and the US. First, the asymmetric volatility transmission between the stocks is analyzed by extended EGARCH representation. The study found the existence of asymmetric volatility spillovers throughout the financial crisis. The researcher estimated the VECM granger causality test in the next step. The outcomes revealed existence of bidirectional spillover between Pakistan and India, the US to Japan and Hong Kong. Unidirectional relationship was found from Pakistan and the US to Hong Kong, India to the US and Hong Kong to China. Overall, the results suggest a significant relationship between emerging and developed markets due to integration.

China and India are rising powers of Asia. Both Asian giants have to adopt the policy of interdependence by growing economic ties; on the other side, they have a strict stance on border disputes. This article describes in detail the bilateral relationship between China-India, especially under the Modi doctrine, during his first term. Secondly, it also discusses the limitation of these growing ties and growing concerns for Pakistan. The basic argument of this article is that the growing economic interdependence will affect Pakistan, especially if this interdependence transfer from the economic to military dimension. The whole data is based on exploratory in nature. A qualitative research method has been used to achieve the research goals. Tools used for data collection include oral interviews and content analysis of the existing literature on the subject in the form of books, official reports and research articles. The relevant literature has been objectively analyzed to reach a meaningful conclusion.