Stocks climbed for a second day, bringing back the benchmark index above the 8,000-point mark, as Asian markets welcomed the receding tension between the US and North Korea.
The Philippine Stock Exchange index, the 30-company bellwether, climbed 47 points, or 0.6 percent to close at 8,009.41, as five of the six major sectors advanced.
The heavier index, representing all shares, also gained 23 points, or 0.5 percent, to settle at 4,729.73, on a value turnover of P4.8 billion. Advancers outnumbered losers, 121 to 82, while 44 issues were unchanged.
Thirteen of the 20 most active stocks ended in the green, led by newly listed Chelsea Logistics Holdings Corp. which rebounded 6.5 percent to P10.12. Wilcon Depot Inc., a retailer of home furnishings, climbed 5.9 percent to P8.82, while food manufacturer Universal Robina Corp. gained 3.3 percent to P147.
Meanwhile, Asian equities extended gains and the yen tumbled as the prospect of war between the US and North Korea receded, buoying stocks from New York to Tokyo and diverting flows away from haven assets.
Stock indexes from Tokyo to Hong Kong to Sydney climbed after the S&P 500 Index surged 1 percent. European and UK equity-index futures indicated a stronger open.
Japan’s currency, a haven in times of global tension, slumped after the Wall Street Journal characterized a North Korean media report as indicating that dictator Kim Jong Un had decided not to launch a threatened missile attack on Guam.
The report, from KCNA on Tuesday, said Kim praised the military for drawing up a “careful plan” to fire missiles toward Guam. Kim was cited by KCNA saying he would watch the US’s conduct “a little more.”
All major regional indices were glowing green, with prices jumpstarted by a strong performance on Wall Street and Europe and fueled further as Pyongyang appeared to put on ice its plan to launch missiles near Guam.
Markets also breathed a sigh of relief as senior US figures dialed down tensions over North Korea, after a war of words last week sparked global alarm.
Tokyo powered more than one percent higher by the break, with the weakening yen providing an extra boost to the Nikkei which had closed at its lowest level for more than three months Monday.
Hong Kong, Shanghai and Sydney were also well into positive territory while Seoul was closed for a public holiday.
“Tensions between the US and North Korea seemed to cool a little — at least on the US side and that emboldened the bulls to buy stocks once again,” said Greg McKenna, an analyst at AxiTrader.
US stocks were solidly higher Monday, with the S&P 500 advancing one percent.
“US investors have found it difficult to ignore the potent combination of strong profit growth, low bond yields and a lower US dollar,” said Ric Spooner, an analyst at CMC Markets in Sydney.
However, the dollar moved off recent lows after New York Federal Reserve Bank president William Dudley indicated another interest rate increase this year was likely and suggested the central bank would reveal plans to reduce its balance sheet next month. With Bloomberg, AFP