Philippine stocks, along with other Asian markets, declined Monday after President Donald Trump announced 25-percent tariffs on all steel and aluminum shipments to the US.
The Philippine Stock Exchange index plunged 117.87 points, or 1.91 percent, to close at 6,037.12, while the broader all-shares index shed 46.37 points, or 1.27 percent, to settle at 3,617.27.
Analysts said the equities markets continued to react to Trump’s policy changes and their economic implications.
Only the mining and oil sector ended in the positive territory, rising 0.90 percent. Property declined the most among the sectoral indices, dropping 2.43 percent, followed by financials by 2.42 percent and services by 1.61 percent.
First Metro Securities Research said investors were wary over lingering uncertainties caused by Trump’s policies.
Value turnover reached P5.1 billion, with 78 advancers, 111 decliners and 44 unchanged names.
Foreign investors were net sellers, with outflows reaching P438.19 million.
Alliance Global Group Inc. was the top gainer, climbing 1.76 percent to P7.50, while JG Summit Holdings Inc. was the main index loser, declining 6.3 percent to P15.16. JG Summit’s share price has declined by 21 percent since the start of the year.
The peso weakened slightly Monday, closing at 58.09 against the US dollar from 58.03 Friday.
Equities were also mostly down in Asia after Trump ramped up his trade war by announcing huge tariffs on steel and aluminum imports and warned every country would face “reciprocal” levies.
Another week got off to an uncertain start following losses on Wall Street that came in reaction to data showing US consumers increasingly worried about inflation and news that far fewer jobs than expected were created last month.
The US president resumed his hardball tactics on trade since returning to the White House by last week hitting China with a fresh batch of tariffs, having reached a deal to delay measures against Canada and Mexico.
The moves have fanned concerns about the global economy and jolted a recent rally in markets.
Trump said Sunday 25-percent duties would be imposed on “any steel coming into the United States”, adding this will also affect aluminum.
He also said he would announce “reciprocal tariffs” to match his government’s levies to the rates charged by other countries on US products.
“Every country will be reciprocal,” he warned, adding that he would provide details on Tuesday or Wednesday.
Guo Jiakun, spokesman of China’s Ministry of Foreign Affairs, reiterated Beijing’s line Monday that “there is no winner in a trade war”, while French foreign minister Jean-Noel Barrot said the European Union will counter in kind to “replicate” any tariffs imposed on it by Washington.
The news weighed on commodity-linked currencies, with the Canadian dollar, Mexican peso and South Korean won all weaker.
Canada is the largest source of steel and aluminum in the United States, according to US trade data. Brazil, Mexico and South Korea are also major steel providers to the country.
At a meeting with Prime Minister Shigeru Ishiba in Washington on Friday, Trump threatened to target Japanese goods if the US trade deficit with the country is not equalized.
Equities struggled, with Sydney, Seoul, Bangkok, Mumbai, Jakarta, Wellington and Taipei all lower.
“Trump’s latest move isn’t merely another trade skirmish; it’s an escalation of his ‘America First’ trade doctrine where ‘no country is off-limits’,” said Stephen Innes at SPI Asset Management. With AFP
