Stocks retreated Thursday along with most Asian markets on profit taking and worries over the size of the Bank of Japan’s expected stimulus.
The Philippine Stock Exchange Index dropped 75.50 points, or 0.9 percent, 8,024.98 on a value turnover of P10.1 billion. Losers beat gainers, 121 to 70, with 53 issues unchanged.
Ayala Land Inc. fell 2.4 percent to P40, while parent Ayala Corp. lost 2 percent to P890.
SM Prime Holdings Inc., the biggest integrated property developer, slipped 1.7 percent to P29.55, while JG Summit Holdings Inc. of industrialist John Gokongwei skidded 3 percent to P84.25. Unit Cebu Air Inc., the largest budget carrier, surged 5.2 percent to P105.20.
The dollar, meanwhile, sank Thursday after the Federal Reserve indicated it would take a slow, measured approach to any interest rate hikes, while Tokyo led most Asian markets lower.
After a closely watched meeting the Fed held borrowing costs but noted the world’s top economy had improved and expressed less fear about the impact of Britain’s vote to leave the European Union last month.
The meeting followed a string of positive readings—particularly on jobs growth and key consumer spending—that has fanned speculation of a tightening in monetary policy despite weakness in most other global economies.
“There is a lot of data between now and the mid-September policy meeting, so more evidence of solid growth and rising inflation could lead the Fed to act,” Richard Jerram, chief economist at Bank of Singapore, said in a note.
“However, they tend to err on the side of caution so we think it is more likely that they wait until December.”
The Dow and S&P 500 ended slightly lower, while in Asia the dollar retreated against most other currencies.
The Japanese government’s announcement Wednesday of a 28 trillion yen stimulus—without releasing details—was unable to provide much excitement in Tokyo, where the Nikkei index ended 1.1 percent lower.
Elsewhere, Hong Kong slipped 0.2 percent by the close and Singapore was 0.9 percent off in the afternoon while Seoul ended down 0.2 percent and Manila dived 1.4 percent. Sydney, however, added 0.3 percent, while Shanghai edged up 0.1 percent after suffering a hefty loss Wednesday.
“Investors are wary that the BoJ will disappoint and it’ll lead to a bout of selling,” Mitsushige Akino, a Tokyo-based executive officer at Ichiyoshi Asset Management, told Bloomberg News.
The greenback fell to 104.75 yen from 105.31 yen in New York. The euro rose to $1.1091 from $1.1062, and well up from $1.0989 seen earlier Wednesday in Asia.
Higher-yielding currencies also made inroads against the US unit, with the Australian dollar putting on 0.7 percent and South Korea’s won 0.9 percent, while the under-pressure Turkish lira climbed 0.8 percent. Malaysia’s ringgit added 0.7 percent and the Indonesian rupiah was 0.2 percent higher.
The strong yen sent Japan’s Nikkei tumbling as the country’s central bank began its own two-day policy meeting. Traders are worried the bank will not deliver Friday a big enough stimulus to kickstart the world’s number three economy. With AFP
