Stocks rebounded Monday from a four-day decline last week, following the release of mixed corporate results and as investors returned to emerging markets amid the receding tension between the US and North Korea.
The Philippine Stock Exchange index, the 30-company benchmark, climbed 33 points, or 0.4 percent, to close at 7,962.12, as all six major sectors advanced.
The heavier index, representing all shares, also rose 24 points, or 0.5 percent, to settle at 4,706.04, on a value turnover of P5.1 billion. Gainers outnumbered losers, 106 to 96, while 47 issues were unchanged.
Fourteen of the 20 most active stocks ended in the green, led by gaming company Bloomberry Resorts Corp. which surged 10.4 percent to P9.94. Retailer Wilcon Depot Inc. climbed 3.1 percent to P8.33, while Jollibee Foods Corp. rose 2.6 percent to P222. Semirara Mining and Power Corp. advanced 2.5 percent to P170.
Most Asian markets also advanced Monday, as the risk-off mood that gripped markets last week showed signs of easing. American stock futures advanced as the prospect of a war between the US and North Korea receded. Havens including gold, Treasuries and the yen fell.
Fears of a catastrophic confrontation between Washington and Pyongyang were calmed when CIA director Mike Pompeo said Sunday there was “nothing imminent” in the escalating stand-off.
Regional equities were also boosted by a positive lead from Wall Street on Friday, after investors waded back into the market following a three-day sell-off.
Hong Kong was back in positive territory Monday after slumping two percent Friday, while Shanghai ended the day higher despite data showing Chinese industrial production slowed sharply in July as government efforts to rein in debt weighed on demand.
However, Tokyo closed one percent down as traders returned from a three-day holiday weekend to play catch-up after Asian and European shares had dropped Friday, with the Nikkei finishing at its lowest level in more than three months.
Investors largely shrugged off official data showing Japan’s economy grew by a faster-than-expected one percent in the three months to June, as the accelerating world number three economy marked its longest economic expansion in more than a decade.
“What we’re seeing today is relief at the [geopolitical] situation not deteriorating over the weekend, something traders were clearly wary of towards the end of last week,” said Oanda analyst Craig Erlam.
European stocks moved higher at the start of trading on Monday with London, Paris and Frankfurt all up.
As markets started recovering, the dollar rose against the Japanese currency to above 109.7 yen in afternoon trade—although still off 109.99 yen in Tokyo on Thursday—while gold halted its advance after jumping 2.4 percent last week.
“We’re seeing a small unwinding of … risk aversion trades, with gold trading slightly lower and the yen and Swiss franc off against the dollar, pound and euro,” Erlam added.
Indices could reap the benefit of investors returning following losses worldwide last week, triggered after President Donald Trump threatened to unleash “fire and fury” on North Korea, and Pyongyang countered by announcing plans to test-launch missiles toward Guam. With AFP, Bloomberg
