Stocks retreated from a three-day gain, as the market remains uncertain over the impact of a Donald Trump presidency and as investors bet on a US interest rate rise next month.
The Philippine Stock Exchange index, the 30-company benchmark, shed 88 points, or 1.3 percent, to close at 6,979.06 Monday.
The broader index, representing all shares, also tumbled 31 points, or 0.7 percent, to settle at 4,222.62, on a value turnover of P5.6 billion. Advancers outnumbered gainers, 88 to 86, while 49 issues were unchanged.
All six sectoral indices dropped, while 10 of the 20 most active stocks ended in the green. PhilWeb Corp. surged 18 percent to P11, while Globe Telecom Inc. climbed 3 percent to P1,422.
Meanwhile, the greenback has soared to near six-month highs against the yen since Trump’s election win on a platform of huge infrastructure spending and tax cuts. Experts say this will fan inflation and force the Federal Reserve to raise rates.
The dollar’s rise has been a boon for Japan’s exporters as it makes their goods cheaper overseas and boosts repatriated profits.
The dollar hit 111.12 yen at one point in Japan, levels not seen since the end of May, while the Nikkei stock index climbed 0.8 percent to its highest level since January.
“The trend for yen weakness will continue amid a very violent and volatile market next year,” said Shusuke Yamada, chief Japan foreign exchange and equity strategist at Bank of America Merrill Lynch in Tokyo.
However, Chris Weston, chief market strategist in Melbourne at IG Ltd, told Bloomberg News: “We have seen some monster moves over the past two weeks on Fed expectations, and I think that can’t go on for much longer.
“I wouldn’t be surprised to see a little bit of pause as investors take a break to catch their breath, and these Asian markets may take a little breather as well and see some consolidation, whether it’s been falling or rallying.”
Most regional markets retreated on concerns that the Fed would raise rates faster next year than previously thought.
Hong Kong fell 0.1 percent in late trade and Shanghai ended 0.8 percent higher.
Sydney eased 0.2 percent and Seoul was 0.4 percent off.
Among emerging-market bourses Manila lost 1.6 percent and Jakarta fell 0.4 percent, hit by foreign cash outflows as dealers head to the United States looking for better and safer returns.
Singapore dipped 0.4 percent and Wellington gave up 0.1 percent.
Oil prices built on Friday’s gains, with both main contracts rising more than one percent, after Russia and Iran expressed optimism a deal can be agreed between OPEC and other major producers on cutting output.
Jeffrey Halley, senior market analyst at OANDA, said: “As we enter the final lap of a tortuous OPEC process, with (the group’s twice-yearly meeting on) 30th November finally in sight, expect oil prices to be driven by whatever comments, unofficial or official, are coming from them and Russia.” With AFP, Bloomberg