The stock market recovered Friday led by a rally in blue chips, ignoring losses in the region.
The Philippine Stock Exchange Index rose 55.10 points, or 0.7 percent, to 7,843.16 on a value turnover of P9.9 billion. Losers, however, beat gainers 118 to 89, with 38 issues unchanged.
Ayala Land Inc., a major property developer, climbed 1.9 percent to P39.75, while SM Investments Corp. of retail tycoon Henry Sy Sr. advanced 1.6 percent to P803.
BDO Unibank Inc., the biggest lender, increased 2.5 percent to P124.
Metro Pacific Investments Corp., an infrastructure holdings company owned by Hong-Kong-based First Pacific Co. Ltd., added 0.3 percent to P6.39.
The rest of Asian markets went into reverse Friday after Wall Street and Europe suffered hefty losses in response to central banks’ signals that the end to the era of cheap-money was drawing to a close.
After years of loose monetary policies designed to navigate global economies out of the financial crisis, improving growth and easing unemployment have allowed banks to start flagging tightening measures including interest rate hikes.
While the upbeat outlook is welcomed as a sign of optimism—Asian markets rallied on Thursday—there are concerns the world economy can withstand a more stringent borrowing environment.
Wall Street’s three main indexes ended deep in the red, while European stocks were also well down.
The selling seeped through to Asia with heavy losses in technology firms continuing while banks were hit by profit-taking.
Tokyo ended 0.9 percent lower, Hong Kong fell 0.7 percent, Sydney sank 1.7 percent and Singapore shed 0.6 percent.
Wellington, Taipei and Bangkok were also well down.
Shanghai reversed early losses to end up 0.1 percent following data showing a forecast-beating jump in an index of Chinese manufacturing.
The official reading of the purchasing managers index indicated the world’s number two economy was stabilizing, although analysts voiced concerns about an ongoing growth slowdown.
In early European trade, London fell 0.2 percent Paris added 0.1 percent and Frankfurt was flat.
“It’s the wild swings we are starting to see that worry me the most. Volatility begets volatility and the chances of a very big dip are growing,” said Greg McKenna, chief market strategist at AxiTrader.
There is also fading optimism that President Donald Trump will be able to push through promised market-friendly growth programs as he struggles to garner support for his health care bill despite controlling both houses of Congress.
The shift by central banks out of their easy-money policies—led by Britain, the European Central Bank and Canada—has also weighed on the dollar.
For years the greenback has benefited from a divergence between the Federal Reserve’s move to higher rates—including to rate hikes this year—and other regions. But analysts said the mood is changing.
“A game changer of a week as hawkish central bank commentary steamrolled the markets,” said Stephen Innes, senior trader at OANDA. With AFP