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I want to use American stock index, such as S&P 500 index(open, close...) to predict japan stock daily close price or other with machine learning. I found that there is timezone between japan and New York timezone, there are about 13 hours difference, I mean Wednesday, 5 July 2017, 19:12:00 in Tokyo time, the New York time is: Wednesday, 5 July 2017, 06:12:00. I mean if I want to use the S&P 500 index which is American index to predict japan stock daily close price, I think I can't use the same day(date) data of s&p 500 and japan stock data to predict the next day close price since there are time difference between Japan and USA. For example, if want to predict 7/6 Japan stock close price, I can use the 7/5 japan stock price data for features, and I can't use the 7/5 S&P 500 index data for features, I should use the 7/4 S&P 500 index data for predicting 7/6 stock price. I want to ask:

(1). Should I use the yesterday or today data of S&P 500 data to predict tomorrow japan stock price.

(2). How to processing the missing value of S&P 500 data which some date(I mean the same date of japan stock price) is missed. How about Friday S&P 500 index.

Thanks!

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  • $\begingroup$ The Wednesday close of S&P and the Wednesday close of Nikkei can be used to predict the Thursday Open and/or Thursday Close of Nikkei. When S&P closes on Wednesday it is about 5 am Thursday in Japan so the Thursday business activity in Japan has not begun (or finished) yet. So a prediction would be meaningful. $\endgroup$ – Alex C Jul 6 '17 at 3:02
  • $\begingroup$ thanks! you mean I can also use Wednesday close of S&P to predict japan stock price on Thursday since the business activity have not begun yet. Namely I can also use today index of S&P 500 to predict tomorrow Japan stock price. $\endgroup$ – tktktk0711 Jul 6 '17 at 3:08
  • $\begingroup$ Hi @AlexC, I found that you are good at finance, Could you tell me your email or other contact way so that I can ask you about finance question, please ! Thanks! $\endgroup$ – tktktk0711 Jul 6 '17 at 3:24
  • $\begingroup$ Hi @AlexC , you can answer my question, I will accept it. $\endgroup$ – tktktk0711 Jul 6 '17 at 5:39
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To forecast something you can use any variable that is known before the result you are trying to forecast.

For example the Wednesday close of S&P and the Wednesday close of Nikkei can be used to predict the Thursday Open and/or Thursday Close of Nikkei. When S&P closes on Wednesday it is about 5 am Thursday in Japan so the Thursday business activity in Japan has not begun (or finished) yet. So a prediction would be meaningful, it would be looking forward in time.

In general you can use today closing index value of S&P 500 to predict tomorrow Japan stock price.

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