The stock market climbed Friday, tracking another record close on Wall Street following more buoyant US data and hopes for tax reform, which has also boosted the dollar and fueled expectations of further gains.
The Philippine Stock Exchange Index rose 16.87 points, or 0.2 percent, to 8,310.88 on a value turnover of P7.4 billion. Gainers edged losers, 99 to 96, with 49 issues unchanged.
Pilipinas Shell Petroleum Corp., the smaller of the country’s two refineries, advanced 2.3 percent to P68, while Megawide Construction Corp. gained 2.2 percent to P17.76.
Conglomerate Ayala Corp. increased 1.8 percent to P1,015, while SM Investments Corp. of retail tycoon Henry Sy Sr. added 1.3 percent to P911.
The rest of Asian stocks gained, boosted by favorable US economic figures. As the US Labor Department prepares to unveil job creation figures for September, traders were given a positive bump Thursday with figures showing improving factory orders, jobless claims and exports.
The news came as US lawmakers passed an outline budget plan, providing some optimism that Donald Trump’s key economic pledge to cut taxes could come to fruition.
Analysts said the figures could indicate strong growth for the US economy in the third quarter.
All three main indexes in New York closed at all-time highs, with the S&P 500 notching a sixth-straight record”•the longest streak since 1997.
And the rally extended into Asia, where Tokyo’s Nikkei ended 0.3 percent up at a more than two-year high, while Hong Kong added 0.2 percent in the afternoon”•putting it on course for its best finish in 10 years.
Sydney put on one percent and Singapore climbed 0.5 percent.
The move into riskier assets has also hit safe-haven gold, which has fallen more than six percent from the one-year high hit a month ago.
Comments from International Monetary Fund head Christine Lagarde that “the long-awaited global recovery is taking root” provided for further optimism.
In early European trade London rose 0.2 percent and Frankfurt gained 0.1 percent but Paris slipped 0.1 percent.
The dollar extended Thursday’s gains as dealers contemplated Trump’s tax cuts passing through Congress and remarks from top Federal Reserve officials indicating another interest rate hike before the end of the year, with the possibility of more in 2018.
“Inter-party (Republican) squabbling has subsided as the US House has taken essential steps setting the stage to roll out a determined tax-overhaul bill which should pass without Democratic backing,” said Stephen Innes, head of Asia-Pacific trading at OANDA.
The greenback was also given some help against the euro by Spain’s ongoing crisis with Catalonia threatening to break away, which has seen the single currency sink to around $1.17″•having topped $1.20 just two weeks ago.
The pound came back under pressure as the future of Prime Minister Theresa May, whose much-anticipated Conservative Party conference speech this week ended in disaster, is called into question.
There are worries that her removal could spark fresh uncertainty in Britain as it negotiates with the EU over leaving the bloc. With AFP
