The stock market rallied Monday as a stronger-than-forecast jump in US jobs provided some much-needed optimism after the hammering caused by Britain’s vote to leave the European Union.
The Philippine Stock Exchange Index surged 93.75 points, or 1.2 percent, to 7,865.27 on a value turnover of P8.1 billion. Gainers beat losers, 131 to 73, with 43 issues unchanged.
SM Prime Holdings Inc. advanced 2.9 percent to P28.30, while Ayala Land Inc. climbed 2.4 percent to P39.10.
Metro Pacific Investments Corp., which into toll roads, water and electricity distribution, and hospitals gained 2.9 percent to P7.02, while Megaworld Corp., the biggest lessor of office spaces, jumped 4.3 percent to P4.85.
Tokyo, meanwhile, led a surge in Asian stock markets following Friday’s data showing the world’s biggest economy registering a surge in new posts last month. The data also lit a fire under US and European shares, which were also boosted by hopes for fresh central bank stimulus.
The Labor Department said 287,000 jobs were created in June, 112,000 more than expected and a sharp improvement on May’s 11,000 that had raised fears of a potential recession.
The news saw all three main indexes on Wall Street surge, while European markets also rallied.
Tokyo’s Nikkei was the stand-out performer in Asia on Monday, with a landslide victory for Prime Minister Shinzo Abe’s ruling party providing extra support.
The victory fueled speculation for a fresh round of stimulus, reportedly worth as much as 20 trillion yen ($120 billion), to kickstart the stumbling economy.
Nintendo was the star, soaring more than 20 percent on news that its smartphone game Pokemon Go debuted at the top of the gaming charts. The gains built on a nine percent rise Friday.
The Japanese market ended 4 percent higher.
Hong Kong rose 1.5 percent, Shanghai added 0.2 percent and Seoul gained 1.3 percent. Sydney jumped 2 percent after the ruling conservative party won last week’s general election, bringing an end to uncertainty that had put the country’s AAA sovereign rating at risk.
“Investors are basically welcoming the victory of Abe’s ruling coalition,” Daisuke Uno, chief market strategist of Sumitomo Mitsui Banking, told AFP.
“But the question is whether or not stock prices can keep up this pace.”
The positive mood fanned buying throughout Asia, which suffered sharp losses last week on worries about the impact of Britain’s shock June 23 decision to break away from the EU.
The upbeat start to the week also saw high-yielding currencies rise, with the South Korean won up more than one percent against the dollar, Indonesia’s rupiah 0.6 percent higher and Malaysia’s ringgit also rising more than one percent. With AFP