Philippine stocks and the peso rose Tuesday as investors seized bargain opportunities ahead of the release of February inflation report.
The Philippine Stock Exchange index (PSEi) gained 26.92 points, or 0.45 percent, to close at 6,064.11, while the broader all-shares index rose 8.84 points, or 0.24 percent, to end at 3,628.96.
“The local market extended its rise backed by investors’ appreciation of robust Q4/FY 2024 corporate results. Optimistic expectations towards the Philippines’ February inflation print also helped in today’s climb,” said Philstocks Financial Inc. research head Japhet Tantiangco.
The peso also advanced Tuesday to close at 57.75 against the US dollar from 57.90 Monday.
Most PSE sectoral indices ended higher, with mining and oil rising 3.72 percent and financials sector climbing 1.27 percent. The industrial sector gained 0.49 percent, while the services sector rose 0.73 percent.
Property declined 0.12 percent and holding firms by 0.07 percent.
Trading was quite active, with a net value turnover of P6.56 billion, above the year-to-date average of P5.19 billion.
Foreigners were net sellers, with net outflows amounting to P266.33 million.
ACEN Corp. emerged as top index gainer, advancing 3.29 percent to P3.14. Jollibee Foods Corp. was at the bottom, declining 2.33 percent to P252.
Asian markets recouped some of their early losses in volatile trade Tuesday after China announced fresh tariffs on US imports in retaliation to President Donald Trump’s latest levies.
China said it would impose levies of 10 and 15 percent on a range of US agricultural imports in response to Trump’s tariffs.
The US president signed an executive order to increase a previously imposed 10 percent tariff on Chinese goods to 20 percent, the White House said on Monday.
US tariffs also came into effect on imports from major trading partners Canada and Mexico after a deadline to avert the levies passed without a deal being struck.
Canada said it would respond in kind, with 25 percent tariffs on $155 billion worth of American goods taking effect after the deadline.
Fears of a full-blown trade war increased volatility in markets across Asia.
Tokyo and Hong Kong recovered some of their losses after China announced its retaliatory tariffs.
The Nikkei was down 1.2 percent, while the Hang Seng rose by 0.5 percent.
Shanghai, Bangkok and Manila were also slightly up, while Sydney, Wellington, Taipei, Jakarta, Kuala Lumpur and Seoul were down.
Japanese automakers with Mexican factories in their supply chains also suffered, with Nissan, Toyota and Honda among the major losers.
“The specter of a full-blown trade war is once again looming, threatening to choke global economic growth just as investors were starting to regain confidence,” said Stephen Innes of SPI Asset Management.
Investors are hoping that China will announce a huge economic stimulus package at its key parliamentary meeting, the National People’s Congress, on Wednesday.
“In the upcoming National People’s Congress, Chinese policymakers could provide more pro-growth measures including announcing a larger budget deficit target and maintaining a five percent growth target for this year,” said MUFG Bank’s Lloyd Chan.
Both the Mexican peso and Canadian dollar have dropped against the greenback over the past few days.
Trump expressed outrage on Monday over the weakening of certain currencies, accusing Beijing and Tokyo of using it as a trade strategy, although the Japanese government fiercely refuted the claim.
The oil market also saw sharp declines, with West Texas Intermediate crude falling to $67.99 per barrel and Brent crude dropping to $71.05 per barrel at around 0700 GMT.
Bitcoin’s price plunged nearly 10 percent on Monday as concerns of an escalating trade war pushed investors to seek safer investments.
Bitcoin and similar digital assets had surged at the weekend after Trump suggested creating a national cryptocurrency reserve.
“Everything is getting sold,” Forexlive manager Adam Button said. “There’s a de-risking that’s unfolding” among crypto investors, he said. With AFP
