The stock market bounced back Wednesday on better prospects for the Philippine economy as affirmed by Fitch Ratings, which earlier this week raised the country’s sovereign rating by one level.
The Philippine Stock Exchange Index added 25.55 points, or 0.3 percent, to 8,359.61 on a value turnover of P6.3 billion. Gainers edged losers, 97 to 96, with 43 issues unchanged.
Universal Robina Corp., the biggest snack food maker, surged 4.2 percent to P150, while parent JG Summit Holdings Inc. jumped 5.2 percent to P71.50.
Globe Telecom Inc.,the second-largest telecommunications firm, advanced 3.5 percent to P1,739, while GT Capital Holdings Inc. of tycoon George Ty climbed 2.3 percent to P1,210.
Fitch raised the country’s long-term foreign currency-denominated debt to BBB with a stable outlook. The upgrade puts the Philippines on par with Italy and ahead of Indonesia.
The rest of Asian markets, meanwhile, mostly rose Wednesday as investors await the Federal Reserve’s latest policy meeting, but the dollar slipped as a shock Democrat poll win in a staunch Republican senate seat fueled fears about Donald Trump’s tax cut plans.
Tokyo fell 0.5 percent by the close while Singapore shed 0.2 percent.
But Hong Kong rallied in the afternoon to sit 1.4 percent higher in late trade, while Shanghai closed up 0.7 and Sydney rose 0.1 percent.
Seoul gained 0.8 percent, while there were also rises in Taipei and Wellington.
The Dow and S&P 500 clocked up records on Wall Street, lifted by financials ahead of an expected interest rate hike by the Fed.
Bloomberg News late Tuesday reported Republican senators as saying lawmakers in both houses of Congress were making progress in reconciling two tax reform bills and a final draft could be agreed imminently and it could go to a vote by next Tuesday.
Bets on the market-friendly tax cuts being introduced helped drive a surge in global markets this year and while equities have stuttered in recent weeks analysts suggested more gains could come.
However, Doug Jones’ victory over the controversial Roy Moore in the usually deep-red Alabama senate vote cut the Republicans’ majority to 51-49, meaning any wavering could see them fail to push the tax cuts through.
That sent the dollar falling from 113.51 yen to as low as 113.13 yen before it edged back slightly.
“We could be in for a brush of bad news for the dollar with the latest Alabama election results shifting to Democrat Doug Jones,” said Stephen Innes, head of Asia-Pacific trading at OANDA.
“Given that this result could present some headwinds to US equity markets, dollar negativity will most likely be expressed through the dollar-yen.”
Traders are awaiting the end of the Fed’s two-day meeting, which is widely expected to see the central bank lift borrowing costs again, though the crucial event is outgoing chair Janet Yellen’s statement.
Market-watchers will be dissecting her comments for signals about next year’s timetable for lifting rates but with the rate rise already baked into prices, there was little movement in the dollar in Asia. with AFP