Stocks rebounded Tuesday, after a long holiday weekend as the deep slide last week encouraged investors to search for bargains.
The Philippine Stock Exchange index, the 30-company benchmark, climbed 94 points, or 1.4 percent, to close at 6,658.20. This trimmed the bellwether’s losses this year to 4.2 percent.
The heavier index, representing all shares, also advanced 48 points, or 1.2 percent, to settle at 4,070.60, on a value turnover of P3.3 billion. Advancers outnumbered losers, 90 to 78, while 57 issues were unchanged.
Thirteen of the 20 most active stocks ended in the green, led by Harbor Star Shipping Services Inc. which jumped 15.1 percent to P2.67 and conglomerate Metro Pacific Investments Corp. which gained 6.5 percent to P6.38. Universal Robina Corp. went up 4.7 percent to P157.
Meanwhile, Tokyo stocks ended a three-day decline Tuesday as a sliding yen encouraged investors to look for bargains, but several Asian markets remained closed for the long holiday weekend.
Japanese stocks eked out a small rise, although Toshiba shares dived nearly 12 percent on reports it is likely to record a huge special loss related to a US subsidiary’s acquisition of a nuclear power service company.
The company is expected to post a roughly 100 billion yen ($850 million) one-time loss for the fiscal year ending March 2017, the leading business daily Nikkei reported.
On forex markets, the yen weakened against the dollar and remains 15 percent down from a high in August, despite a small rise last week against the US currency.
But while Tokyo recorded a very modest 0.03 percent gain, Shanghai drifted lower, ending the day down 0.3 percent. South Korean shares rose 0.2 percent.
Hong Kong, Sydney and Wellington were closed for public holidays.
Energy companies were among the losers in Shanghai but China’s state-backed builders extended a rally the day after the Ministry of Transport announced ambitious plans to spend 1.8 trillion yuan ($259 billion) on highways and waterways in 2017.
Trading is expected to be light this week as financial markets end a volatile year, with US stocks near a record high following the surprise US election victory of Donald Trump, and the Dow is tantalizingly close to breaking the 20,000 barrier.
“The financial markets seem to have already priced in expectations toward a Trump presidency, and are shifting toward a market that’s waiting to gauge his actual policies,” Hideyuki Ishiguro, a senior strategist at Daiwa Securities in Tokyo, told Bloomberg News.
“We also have a lack of market participants with overseas markets closed.”
Japan released data Tuesday showing consumer prices fell for the ninth straight month in November, as the nation struggles to shake off deflation that has plagued its economy.
Core consumer prices declined 0.4 percent on-year, the internal affairs ministry said.
Crude was mixed with West Texas Intermediate rising marginally but Brent giving up ground.
Prices have been boosted after OPEC announced at the end of last month its members would slash output by 1.2 million barrels per day beginning in January.
Earlier in December, non-OPEC members approved cuts totalling 558,000 barrels per day.
However, analysts sounded a note of caution.
“Questions remain on whether the rally will continue because unless there are new bullish items, the market may see more uncertainties in the long term,” said Will Yun, a Seoul-based commodities analyst at Hyundai Futures Corp, according to Bloomberg. With Bloomberg, AFP