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Friday, March 29, 2024

Stocks climb above 8,000 points

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The stock market advanced for the fifth straight day Monday led by select blue chip issues, ignoring global losses and rising trade tensions between the US and China.

The benchmark index rose above the 8,000-point mark as falling crude prices in the world market point to lower inflation ahead, which, in turn, will spur higher consumer spending   

The Philippine Stock Exchange Index surged 114.86 points, or 1.4 percent, to 8,084.88 on a value turnover of P10 billion. Gainers beat losers, 120 to 72, with 48 issues unchanged.

Major property developer Ayala Land Inc. climbed 6 percent to P52.45, while Robinsons Land Corp. of the Gokongwei Group gained 4.2 percent to P27.10.

Globe Telecom Inc., the biggest telecommunications firm, rose 4.2 percent to P2,260, while Megaworld Corp., the largest lessor of office spaces, advanced 3 percent to P6.08.

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The rest of Asian markets largely tumbled on Monday, tracking global losses as Wall Street clocked its worst month this year, with investors opting for safe-haven assets in the wake of intensifying trade tensions.

US President Donald Trump’s abrupt threat last week to hit Mexico with tariffs over immigration concerns did little to reassure investors, who were already anxious about the increasingly fractious US-China trade war.

The tariffs, which are set to kick in on June 10, will begin at five percent and rise up to 25 percent unless Mexico substantially reduces the flow of illegal immigrants to the United States, Trump warned.

“People have been saying for years that we should talk to Mexico. The problem is that Mexico is an ‘abuser’ of the United States, taking but never giving,” the US leader tweeted Sunday.

He followed up the threats against Mexico with an announcement that Washington would no longer offer preferential trade treatment to India, starting Wednesday, in a bid to pressure New Delhi to increase market access for US goods.

Coming on the back of a months-long trade spat with China, Trump’s latest salvos rattled markets, prompting a flight from equities to safe-haven investments.

That saw the yen strengthen which in turn weighed on Japanese shares, with Tokyo’s main index falling 0.9 percent.

Hong Kong edged down 0.1 percent, while Shanghai dropped 0.3 percent and Sydney lost 1.2 percent. But Seoul rose 1.3 percent.

Beijing’s imposition of duties on $60 billion worth of US goods came into effect Saturday.

The move, which came in retaliation for Washington raising its tariffs on $200 billion in Chinese goods, is the latest round in a bruising battle between the two superpowers.

Referring to “the never-ending game of tariff tag,” OANDA senior market analyst Edward Moya said there were fears “we could see a global recession by the middle of next year if the US imposes additional tariffs on China and Mexico.”

“The threats to global growth seem to be here to stay as markets appear convinced the new normal will be constant trade negotiations around the world.”

“Instead of focusing on one trade deal at a time, the US has overplayed its dominant hand and appears vulnerable to only finalizing temporary solutions,” he said.  With AFP

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