Stocks rose for a fifth day, sending the benchmark index to a new six-month peak, following another record close on Wall Street, with investors optimistic before Donald Trump’s promised announcement of much-vaunted tax reforms.
The Philippine Stock Exchange index, the 30-company benchmark, advanced 25 points, or 0.3 percent, to close at 7,726.45 Wednesday. This brought total gains this year to 12.9 percent.
The heavier index, representing all shares, also climbed 15 points, or 0.4 percent, to settle at 4,612.80, on a value turnover of P6.5 billion. Advancers outnumbered losers, 98 to 81, while 55 issues were unchanged.
Fourteen of the 20 most active stocks ended in the green, led by MRC Allied Inc. which jumped 8.9 percent to P0.43 and Melco Crown (Philippines) Resorts Corp. which climbed 5.5 percent to P7.49. Bloomberry Resorts Corp. rose 4.6 percent to P9.40.
Meanwhile, Asian markets also traded higher Wednesday. After shooting out of the blocks Monday in response to Emmanuel Macron’s election triumph in France’s election first round, trading floors remain buoyant thanks to a strong start to the US earnings season and Trump’s expected stimulus.
The positive sentiment has also been boosted by a slight easing of tensions over North Korea and hopes a feared shutdown of the US government can be averted, after the president appeared to soften his stance on congressional funding for his Mexican border wall.
Optimism, at a premium for the past few weeks—owing to geopolitical tensions and Trump’s failure to push through key legislation—is swirling around markets again, sending the safe-haven yen lower and thus boosting Japanese stocks.
Tokyo’s Nikkei ended up 1.1 percent, while in late trade Hong Kong was 0.4 percent higher, its fifth straight day of gains.
Shanghai edged up 0.2 percent, extending the previous day’s advance after suffering a sell-off in recent weeks on concerns about a government crackdown on leveraged investments.
Sydney finished 0.7 percent higher while Seoul jumped 0.5 percent. Wellington surged 1.6 percent and there were also gains in Singapore, Taipei and Jakarta.
In early European trade London dipped 0.1 percent, Paris lost 0.3 percent and Frankfurt was flat.
Asian traders were given a strong lead from Wall Street, where the Nasdaq broke through the 6,000 marker for the first time and the Dow jumped more than one percent on strong earnings reports.
Attention now turns to Washington where the White House will unveil its long-awaited tax reforms, with speculation of huge cuts in personal and corporation tax.
The policy, along with plans to boost infrastructure spending and slash red tape, were among the key drivers of a global markets rally that followed Trump’s November election win.
The bill comes weeks after the tycoon’s planned healthcare reforms fell at the first hurdle as his own Republican colleagues failed to agree, throwing his whole agenda into doubt.
“It’s another sign that adjusting for the initial setbacks the president has faced for his agenda, it’s clear he is still pushing forward with his plans,” said Greg McKenna, chief market strategist at AxiTrader.
On currency markets the euro built on this week’s gains on reports the European Central Bank could start to wind down its monetary easing programme as eurozone economies continue to improve.
However, the Canadian dollar held up in Asia after tumbling more than one percent Tuesday in response to Washington imposing a 20 percent tariff on softwood lumber imports.
Analysts said the move could be seen as a litmus test for Trump’s protectionist policies, which he touted so often during the election campaign. With AFP, Bloomberg
