Stocks fell Monday as fresh Chinese and US tariffs on goods worth hundreds of billions of dollars kicked in, though Donald Trump reiterated that the two sides were still due to hold talks this month.
The Philippine Stock Exchange Index dropped 61.13 points, or 0.8 percent, to 7,918.53 on a value turnover of P5.3 billion. Gainers, however, beat losers, 110 to 94, with 43 issues unchanged.
BDO Unibank Inc., the biggest lender in terms of assets, declined 2.7 percent to P145, while Aboitiz Equity Ventures Inc. lost 1.5 percent to P53.10.
Nickel Asia Corp., the largest nickel producer, jumped 50 percent to P4.11, while Global Ferronickel Holdings Inc. surged 14.3 percent to P1.68. Nickel prices surged in the global market after Indonesia announced a ban on the exports of the ore at the end of December, or two years ahead of the government plan.
Most Asian markets, meanwhile, fell on Monday. Hong Kong was weighed down by another weekend of violence, fueling worries about possible Chinese intervention in the financial hub, while the unrest has also hit property firms and Macau’s casinos.
Washington’s latest levies on imports from China took effect on Sunday and were followed by Beijing’s retaliation.
The measures are the latest in the long-running trade war between the world’s top two economies, which has rattled markets and hit growth across the globe.
Still, Trump said negotiators would meet this month to discuss the issue. “We are talking to China, the meeting is still on,” he told reporters.
However, analysts warned there was unlikely to be any end in the near term.
“After a rough August traders should buckle up for more volatility in September,” said Neil Wilson, chief market analyst at Markets.com. “Trade and tariffs continue to gnaw away at investor confidence.”
Tokyo and Sydney each ended 0.4 percent lower, while Singapore shed 0.8 percent, with Bangkok and Jakarta also down.
But Shanghai rose more than one percent after a better-than-expected reading on Chinese factory activity, though another index showed the sector remained in contraction and investors remain uncertain about the outlook as the trade war bites deeper. There were also gains in Seoul, Wellington and Taipei.
Hong Kong sank 0.4 percent after a weekend that saw some of the worst violence since protests began three months ago, with the airport targeted again, and demonstrators have called for a general strike on Monday though there was little sign that had been heeded.
The unrest has dragged a range of sectors, with tumbling tourist numbers hitting casinos and hotel chains, while real estate shares are also being sold off.
“Markets are fretting on the increased likelihood of direct Chinese intervention and what that would mean for the future of one of Asia’s leading financial centres,” said Jeffrey Halley, senior market analyst for Asia-Pacific at OANDA.
“The answer is, not good, to put it bluntly. The economic impact will surely show in Hong Kong data going forward and may temper the mood of equity traders in Asia as the new month begins.” With AFP