Stocks rose Thursday, ending a two-day slump, after the government announced the economy grew 6.8 percent last year, exceeding China’s 6.7-percent expansion.
The Philippine Stock Exchange index, the 30-company benchmark, gained 9 points, or 0.1 percent, to close at 7,332.64. This pushed up the market’s gains this year to 7.2 percent.
The heavier index, representing all shares, picked up 4 points, or 0.1 percent, to settle at 4,410.80, on a value turnover of P7 billion. Gainers outnumbered losers, 95 to 84, while 50 issues were unchanged.
Ten of the 20 most active stocks ended in the green, led by developer Suntrust Home Developers Inc. which jumped 10.9 percent to P1.02 and retailer Puregold Price Club Inc. which climbed 5.4 percent to P44.25. BDO Unibank Inc. advanced 2.7 percent to P115.
Meanwhile, a global equities rally gathered speed as Asian stocks climbed to the highest level since July 2015 after the Dow Jones Industrial Average topped 20,000 for the first time. Gold and bonds continued a selloff while the dollar advanced.
Stocks from Tokyo to Hong Kong jumped as US corporate earnings reignited investor optimism in economic growth. Japan’s Topix capped the biggest two-day gain since November as financial shares soared. The dollar moved higher after Wednesday’s decline, while the yield on 10-year Treasury notes continued its climb above 2.50 percent. Gold extended a two-day drop, and oil clawed back past $53 a barrel.
After weeks of unease across trading floors, investors around the world have refound the optimism that fueled a surge in the two months after Donald Trump was elected president.
The latest lease of life comes after the tycoon signed a series of executive orders pushing his pro-growth agenda, including giving the green light to two huge, controversial oil pipeline deals through the United States.
There are hopes he will press on with other promises to ramp up infrastructure spending, cut taxes and do away with various regulations he considers a hindrance to businesses.
Added to this were a series of upbeat earnings reports from big-name firms including Boeing and United Technologies.
In New York, the Dow ended above 20,000 for the first time in its history, while the S&P 500 and Nasdaq also closed at all-time highs as investors shift back to higher-yielding investments and away from safe bets such as bonds.
Asian dealers tracked their counterparts on Thursday, with Tokyo ending 1.8 percent higher. Hong Kong added 1.3 percent in the afternoon and Shanghai gained 0.3 percent on the last day before a week-long Lunar New Year break.
Seoul jumped 0.8 percent and Singapore 0.4 percent, while Wellington and Jakarta also pushed upwards. Sydney was closed for a public holiday.
“The US economy is doing well, corporate earnings are good and it looks like Mr Trump’s policies will keep improving the economy,” Mitsushige Akino, an executive officer at Ichiyoshi Investment Management Co. in Tokyo, told Bloomberg News.
“With bond yields increasing, we’re seeing gradual moves from bonds to risk assets.”
The dollar recovered from recent losses against its major peers although it is struggling to break out of tight band as investors mull comments from Trump and his nominee for Treasury Secretary Steve Mnuchin that the unit is too strong and could hurt the US economy.
“We may have underestimated… investor sentiment towards Mnuchin and Trump’s comments on the dollar,” said Stephen Innes, senior trader at Oanda in a note. With AFP, Bloomberg