Stocks rebounded Thursday, sending the benchmark index above the 7,900-point level, amid a rally in Asian markets on upbeat economic news.
The Philippine Stock Exchange index, the 30-company benchmark, jumped 90 points, or 1.2 percent, to close at 7,927.49, as five of the six sectoral indices advanced, with only the mining and oil sector ending in the red. The bellwether was also up 15.9 percent since the start of the year.
The heavier index, representing all shares, rose 44 points, or 1 percent, to settle at 4,730.32 on a value turnover of P11 billion. Advancers outnumbered losers, 127 to 82, while 49 issues were unchanged.
Sixteen of the 20 most active stocks ended in the green, led by Wilcon Depot Inc. which climbed 7.8 percent to P6.20, and Jollibee Foods Corp. which gained 5.6 percent to P216. PLDT Inc. rose 5.1 percent to P1,816, while newly listed Eagle Cement Corp. added 2.3 percent to close at P15.98.
Meanwhile, Asian equities rose, with a rally in Japan offsetting declines in China, as investors weighed economic data and the possible path for interest rates.
Tokyo led broad gains across Asian markets Thursday, boosted by a weaker yen and upbeat economic news, while the pound extended losses on growing uncertainty about the outcome of next week’s British election.
The advances came as investors brushed off losses on Wall Street that followed an uninspiring report on the economy from the Federal Reserve.
Tokyo ended 1.1 percent higher as dealers welcomed a survey showing Japanese firms boosted their capital spending in the first quarter, a sign they are growing more confident and suggesting the economy is picking up.
The figures came a day after separate numbers showed factory output in April climbed at its fastest pace in six years.
“There are good stories and bad stories out there for investors, but the market is largely welcoming the upbeat business investment data,” Toshihiko Matsuno, chief strategist at SMBC Friend Securities, told AFP.
Most other regional markets tracked the Nikkei. Hong Kong added 0.6 percent in the afternoon and Sydney put on 0.2 percent, Singapore was 0.5 percent up. Wellington, Taipei and Bangkok were also comfortably higher.
However, Shanghai shed 0.5 percent following the release of the private Caixin purchasing managers index of manufacturing, which showed activity contracted in May for the first time in 11 months. The result disappointed dealers, a day after an official reading pointed to a continued increase, beating forecasts.
“China’s manufacturing sector has come under greater pressure in May and the economy is clearly on a downward trajectory,” Caixin analyst Zhengsheng Zhong said in a joint statement with data compiler IHS Markit.
Seoul lost 0.1 percent, while Mumbai was down 0.2 percent a day after data showed the Indian economy slowed in the past financial year during which the government made the shock move to ban most of the currency in circulation.
Asia was given a negative lead from New York after the Fed said in its “beige book” that while sentiment among US firms was broadly upbeat, there were worries in some regions about trade and other government policies.
However, it did not provide any suggestion that the central bank would hold off lifting interest rates as expected later this month, providing support to the dollar. Eyes are on the release Friday of US jobs data, which will provide a better handle on the Fed’s rate plans. With Bloomberg, AFP