Stocks fell for a second day, tracking other Asian markets as investors turned cautious over interest rate policies in the US and European elections.
The Philippine Stock Exchange index, the 30-company benchmark, lost 23 points, or 0.3 percent to close at 7,837.12, as five of the six major sectors declined.
The heavier index, representing all shares, also dropped 5 points, or 0.1 percent, to settle at 4,685.50, on a value turnover of P17.1 billion. Losers outnumbered gainers, 107 to 99, while 39 issues were unchanged.
Nine of the 20 most active stocks ended in the green, led by logistics company 2Go Group Inc. which jumped 15.2 percent to P27.60. Newly listed Eagle Cement Corp. gained 1 percent to P15.72, while
Security Bank Corp. gained 0.8 percent to P217.40, while Alliance Global Group Inc., the holding company of tycoon Andrew Tan, rose 0.9 percent to P15.32.
Meanwhile, most Asian stocks fell as better-than-expected Chinese factory data wasn’t enough to sway investors concerned over interest rate policies and European elections. The British pound dropped while the yuan climbed.
Chinese shares pared earlier gains, while a slump in banks weighed down Japan’s Topix. The British pound dropped for the first time this week as a poll showed Theresa May’s Conservative Party may miss a majority. The onshore yuan headed for the highest closing level since November amid speculation policy makers are supporting the currency. Oil extended losses and iron ore futures slid to the lowest since early November.
Asian shares briefly turned higher as China’s official factory gauge held up, adding to signs the world’s second-largest economy has maintained some of its first-quarter momentum. Data from Japan showed industrial output rebounded in April as overseas demand continued to support the nation’s economic recovery.
While equity benchmarks across the world have posted repeated records this year, potential headwinds to global growth remain. Treasury yields slid Tuesday after Federal Reserve Governor Lael Brainard said soft inflation could cause her to reassess the path forward for monetary policy should it linger.
Fed policy makers lifted rates in March and have penciled in two more 2017 rate increases, and investors expect the first of those to come in June.
Elections in the UK, Germany and Italy are looming as Brexit negotiations begin. The Times of London published a YouGov poll showing that the ruling Conservative may lose 20 seats and their majority in parliament.
WITHMeanwhile, U.S. President Donald Trump is ratcheting up a dispute with Germany and battling to implement spending and tax-cut plans. Fed Bank of St. Louis President James Bullard said on Tuesday the Trump administration will need to deliver on the policy expectations that have driven the stock market higher.
The MSCI Asia Pacific Index dropped 0.2 percent, paring its advance for May to 2.5 percent. The Shanghai Composite rose 0.2 percent, after nearly wiping out an earlier gain of 1.1 percent. The manufacturing purchasing managers index remained at 51.2 for a second straight month in May, compared with a median estimate of 51 in a Bloomberg survey of economists.
Hong Kong’s Hang Seng gained 0.1 percent, heading for a fifth straight monthly gain, the longest winning streak since 2013. Japan’s Topix fell 0.3 percent, following two days of gains.
Australia’s S&P/ASX 200 rose 0.1 percent, while South Korea’s Kospi was flat. Futures on the S&P 500 were little changed. The benchmark index slipped 0.1 percent Tuesday, retreating for the first time in eight days. The Nasdaq 100 Index advanced for an eighth day to an all-time high. The Stoxx Europe 600 Index declined a fourth day on Tuesday as data showed euro-area economic confidence fell for the first time this year. With Bloomberg, AFP