Stocks rose Tuesday on growing optimism that China and the US will sign a partial trade deal next month and dealers bet Britain will leave the EU with a Brexit agreement.
The Philippine Stock Exchange index, the 30-company benchmark, gained 64 points, or 0.8 percent, to close at 7,955.24. It was also up 6.5 percent since the start of the year.
The heavier index representing all shares also moved up 30 points, or 0.6 percent, to settle at 4,784.11, on a value turnover of P6 billion. Losers outnumbered gainers, 94 to 85, while 61 issues were unchanged.
Fourteen of the 20 most active stocks ended in the green, led by conglomerate JG Summit Holdings Inc. which climbed 2.7 percent to P73.50 and Bank of the Philippine Islands which rose 2.2 percent to P97.60.
Meanwhile, most Asian markets also traded higher Monday, after US President Donald Trump reinforced hopes that he and Xi Jinping will be able to put pen to paper on a mini pact, saying China had already begun promised purchases of farm goods and that the first part of a wider commitment was almost complete.
“We’ll be able to, we think, sign a completed document with China on phase one,” Trump said at the White House, adding they would then move on to the next phases.
Trade Representative Robert Lighthizer said efforts were being made for it to be ready when the leaders meet at the APEC summit next month in Chile.
And Trump’s economics adviser Larry Kudlow indicated tariffs planned to go into effect in December could be cancelled if the talks go well.
Increasing signs of progress in the 18-month trade war provided some much-needed relief to global markets, with all three main indexes on Wall Street ending higher and Asia taking up the lead.
Hong Kong rose 0.2 percent, Shanghai ended up 0.5 percent and Sydney gained 0.3 percent.
Singapore put on 0.9 percent and Seoul rallied more than one percent. Wellington, Taipei and Mumbai were also higher. Tokyo was closed for a holiday.
“Unlike previous trade talks where expectations centred on the view that something is better than nothing, this time around there appears to be a tangible and workable roadmap in place,” said AxiTrader senior market analyst Stephen Innes.
He said this was “supported by official confirmation that the US and China were both on the same page about the intent to work towards phase one of a ‘deal’ by mid-November”.
The “fact that phase two is even being discussed at this time… suggests that both the US and China may have finally found a bridge that isn’t too far”.
Traders are also keeping watch on events in London, where Boris Johnson will try on Tuesday to push his Brexit deal with the EU through parliament before next Thursday’s deadline.
Sterling rallied Monday to $1.3013—its highest since May—but ticked back after House of Commons Speaker John Bercow refused the prime minister’s request to put his bill to MPs.
On Tuesday it edged back up against the dollar and euro.
And while many lawmakers say they need more time to read through the details, there is a growing expectation that the government can muster enough support to eventually push the bill through later Tuesday.
Still, with the vote likely to be tight, traders are moving cautiously.
“The prospect of an extension [to the October 31 deadline for leaving the EU] has continued to support the pound,” said Michael Hewson, chief market analyst at CMC Markets UK. With AFP