Philippine stocks soared Tuesday to close above the 6,000 level while investors await key inflation data.
The bellwether Philippine Stock Exchange index jumped 206.02 points, or 3.5 percent, to close at 6,089.06. The broader all-shares index also gained 83.32 points, or 2.36 percent, to reached 3,617.93.
The peso also strengthened to close at 58.34 against the US dollar from 58.66 Monday.
Analysts said Asian shares climbed after US President Donald Trump delayed the implementation of higher tariffs against Mexico and Canada.
Local investors are also awaiting the release of January inflation rate which would provide signal on the next policy move by the Bangko Sentral ng Pilipinas (BSP).
“The January inflation print is crucial as this might influence the policy decision of the BSP on Feb. 13. A lower-than-expected figure may give them another reason to cut interest rates, in addition to the disappointing GDP print. However, we continue to see risks that could limit the BSP’s rate cuts to just 50 bps this year,” Bank of the Philippine Islands said.
All PSE indices ended in the green, led by services which climbed 4.75 percent, followed by financials which rose 3.94 percent and mining oil which advanced 3.41 percent.
Advancers edged decliners, 124 to 61. Value turnover was strong at P6.93 billion. Foreigners were net buyers, with net inflows of P47.60 million.
International Container Terminal Services Inc. was the top index gainer, rising 7.62 percent to P367. Emperador Inc. and China Banking Corp. were the top losers, slipping 3.35 percent and 1.08 percent, respectively.
Asian equities rose with the Mexican peso and Canadian dollar Tuesday after Donald Trump said he would delay the imposition of stiff tariffs on imports from the US neighbours, soothing trade war worries for now.
But early euphoria was tempered after China announced levies on some imports of US goods as Washington’s measures kicked in, with no news that the two sides had reached an agreement to pause.
Markets from Japan to New York were sent tumbling Monday after news at the weekend that Trump had signed off 25 percent duties against Mexico and Canada, fanning concerns for the stuttering global economy.
Hours before the tariffs were due to take effect, Trump said he had struck deals with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum on immigration and fentanyl, and would postpone the measures for a month.
Talks on final deals would continue with both countries, he added.
The tycoon added that he would hold talks with Beijing “probably in the next 24 hours” to avoid new 10 percent tariffs on Chinese imports.
However, with the deadline for the tariffs passing at 0500 GMT, China unveiled tariffs on a range of US goods, including crude, coal, liquefied natural gas, agricultural machinery, large-engined vehicles and pickup trucks.
Beijing also said it would file a complaint with the WTO and announced a probe into tech giant Google as well as adding US fashion group PVH Corp. — which owns Tommy Hilfiger and Calvin Klein — and biotech giant Illumina to a list of “unreliable entities”.
China, Canada and Mexico are the United States’ three biggest trading partners and had warned they would retaliate.
News of the deals with Mexico and Canada saw the Mexican peso surge more than three percent — having tumbled to a three-year low on Monday — before paring the gains slightly. The Canadian dollar jumped more than one percent.
Asian stock markets also advanced, though unease about the lack of movement on averting the Chinese tariffs saw traders’ pare some of the morning’s gains.
Hong Kong, which rose more than three percent in the morning, was up more than two percent, with analysts saying the measures so far would not have a major impact on China’s economy.
Tokyo, Seoul, Sydney, Mumbai, Bangkok, Wellington and Taipei were also in the green. Sydney and Singapore edged down.
London slipped at the open while Paris and Frankfurt were higher.
The euro and British pound remained under pressure after Trump warned the European Union would be next in the firing line, while he did not rule out tariffs against Britain.
“A risk is that this is the beginning of a tit-for-tat trade war, which could result in lower GDP growth everywhere, higher US inflation, a stronger dollar and upside pressure on US interest rates,” said Stephen Dover, chief market strategist and head of Franklin Templeton Institute. With AFP
