Stocks climbed the most in five months as Asian markets advanced, amid speculation the US Federal Reserve policy will remain accommodative.
The Philippine Stock Exchange index, the 30-company benchmark, jumped 212 points, or 2.9 percent, to close at 7,571.15 Tuesday. This pushed up total gains this year to 8.9 percent.
The heavier index, representing all shares, also climbed 92 points, or 2.1 percent, to settle at 4,460.38, on a value turnover of P8.4 billion. Gainers outnumbered losers, 123 to 68, while 35 issues were unchanged.
All six sectors posted gains, while 19 of the 20 most active stocks ended in the green, led by JG Summit Holdings Inc., the investment company of tycoon John Gokongwei which went up 6.6 percent to P76 and SM Prime Holdings Inc., the property unit of tycoon Henry Sy, which rose 6.5 percent to P27.80. GT Capital Holdings Inc. of tycoon George Ty gained 5.2 percent to P1,410.
Meanwhile, other Asian markets climbed Tuesday as mixed readings on the US economy and comments from a top Federal Reserve official tempered expectations about the Fed’s long-term plans for raising interest rates.
The gains came despite a negative lead from New York and Europe where traders are awaiting key events this week, including Chinese growth data, the last presidential debate and a European Central Bank policy meeting.
A below-par reading Monday on manufacturing in New York offset news that overall factory production grew for the third time in four months.
While investors globally expect US interest rates will rise by the end of the year, the figures tempered expectations about the pace of rises after December.
Fed Vice Chairman Stanley Fischer said interest rates would likely be suppressed by several factors, including weak economic growth at home and abroad and low corporate investment.
The news added to downward pressure on the dollar, which fell against the yen, euro and even the pound in New York. And while it edged back against the yen in Asia on Tuesday, it continued to struggle against the euro and pound.
“On a longer-term basis, we do think that the Federal Reserve is likely to be behind the curve where hiking rates is concerned,” Kelvin Tay, regional chief investment officer at UBS Group’s wealth management business in Singapore, told Bloomberg Television.
He added that this meant the dollar was likely at its peak.
Regional stock markets rallied on the prospect of rates staying low for longer. Tokyo ended 0.4 percent higher as the dollar pared early losses against the yen.
Hong Kong was 1.3 percent higher in late trade and Shanghai closed up 1.4 percent.
Sydney gained 0.4 percent and Seoul put on 0.6 percent, while Singapore was up 0.1 percent. Taipei and Manila also recorded healthy gains.
“We’re likely to see some choppy trading until we get some of these risk events out of the way, such as the last US presidential debate,” James Woods, an analyst at Rivkin Securities in Sydney, told Bloomberg News. “Momentum seems to be building up for a December rate hike by the Fed.”
Attention turns to the release Wednesday of Chinese third-quarter economic growth figures, with an AFP survey predicting a slowdown from the previous three months.
The figures will be closely watched after last week’s disappointing China trade results were tempered by a better-than-expected inflation reading. With AFP, Bloomberg