I. Introduction 1

II. Data and Empirical Framework for the Financial Conditions Index 2

  [Box] Market Stress Index (MSI) vs. Financial Conditions Index (FCI) 5

III. Financial Synchronization with Major Advanced Economies and within ASEAN+3 8

IV. Decomposition of Financial Cycles in ASEAN+3: Global, Regional, and EconomySpecific Factors 11

V. Conclusion 13

References 15

Appendix 1. Data Sources and Notes for the Financial Condition Index 17

Appendix 2. Alternative FCI Construction and Robustness Checks 20

Appendix 3. Robustness of Financial Synchronization to Alternative Rolling Windows 24

Appendix 4. Variance in Financial Conditions Explained by Factors, by Economy 25