Stocks rebounded Tuesday, sending the benchmark index to a new 15-month high, amid hopes for fresh global economic stimulus.
The Philippine Stock Exchange index, the 30-company benchmark, climbed 49 points, or 0.6 percent, to close at 8,036.01 Tuesday. The bellwether hit a peak of 8,127.48 on April 10, 2015.
The heavier index, representing all shares, also rose 23 points, or 0.5 percent, to settle at 4,845.98, on a value turnover of P9.3 billion.
Fifteen of the 20 most active stocks ended in the green, led by conglomerate Aboitiz Equity Ventures Inc. which advanced 3.4 percent to P83.20 and port operator International Container Terminals Services Inc. which gained 2.4 percent to P63.70. Security Bank Corp. added 1.7 percent to close at P202.20.
Meanwhile, Asian stock markets mostly fell Tuesday on profit-taking following a week-long rally but Tokyo headed for a sixth straight gain as a weak yen boosted exporters.
The rally in Japan’s export sector was enough to offset a more than 10-percent plunge in mobile giant Softbank, which was hammered after agreeing a $32 billion deal to buy a British chip designer.
Hopes for fresh global central bank stimulus, coupled with forecast-beating readings on US jobs and retail sales, have injected some much-needed optimism after last month’s shock British vote to leave the European Union.
The upbeat outlook has also fed a surge on Wall Street that has seen the Dow and S&P 500 rack up multiple record closes.
While Asian investors cashed in Tuesday, Chris Weston, chief market strategist at IG Ltd. in Melbourne, predicted further gains to come.
“On current sentiment, it seems likely that any pullbacks will be shallow and a buying opportunity,” he said, according to Bloomberg News. “We will need to see good earnings, or the market is at risk of rolling over.”
Hong Kong, which has climbed the previous six days, slipped 0.6 percent in the afternoon, while Shanghai ended down 0.2 percent. Sydney dipped 0.1 percent and Seoul was off 0.2 percent. Singapore shed 0.6 percent.
However, Tokyo, which was closed Monday for a holiday, added 1.4 percent as exporters were lifted by the soft yen.
The Japanese unit has retreated against the dollar in recent weeks on expectations the country will introduce new stimulus and other easing measures. In addition, positive US data have fanned expectations of a Federal Reserve interest rate rise this year.
The dollar was at 106.00 yen Tuesday afternoon, down from 106.14 yen but well up from the levels around 100 yen seen before the jobs report earlier this month. With AFP, Bloomberg
