Philippine stocks rallied Thursday on reports the US inflation continued to cool down, fueling hopes the Federal Reserve would reverse the planned rate hikes.
The 30-company Philippine Stock Exchange index climbed 111.64 points, or 1.73 percent, to close at 6,578.49 Thursday.
Analysts said the market cheered the better-than-expected US June inflation rate which came in at 3 percent, down from 4 percent in May.
“Traders drove the index to bullish bets that the US rate hike cycle will peak at the Federal Reserve’s July meeting and that moderating consumer price pressures could pave the way for a dovish policy shift sooner than initially projected,” China Bank Capital managing director Juan Paolo Colet said.
Colet said with the benchmark index registering its highest close in more than a month, the market could test the 6,600 resistance zone over the short term.
