The stock market extended its gains Wednesday following a record close on Wall Street, but the dollar eased as attention begins to focus on the likely make-up of the new Federal Reserve board.
The Philippine Stock Exchange Index rose 31.12 points, or 0.4 percent, to an all-time high of 8,344.05. Gainers beat losers, 106 to 88, with 62 issues unchanged.
BDO Unibank Inc., the biggest lender in terms of assets, climbed 2.1 percent to P135, while PXP Energy Corp. advanced 4.2 percent to P8.19.
Bloomberry Resorts Corp., which operates a casino on part of a reclaimed land in Manila Bay, rose 3.8 percent to P10.90, but rival Melco Resorts and Entertainment (Philippines) Corp. fell 2.7 percent to P7.56.
Tokyo and Hong Kong, meanwhile, extended gains in Asia equity trade Wednesday.
Investors are broadly upbeat about the global economic outlook and remain buoyed by the release last week of Donald Trump’s tax-cutting plans, while they are also looking ahead to the release of key jobs data on Friday.
With Fed boss Janet Yellen’s term due to end in February, investors will be closely watching for clues about Trump’s choice to take over—a decision expected to be made in two to three weeks.
The president has said he would decide after interviewing ex-board member Kevin Warsh, current governor Jerome Powell and two other candidates.
On equity markets the Nikkei in Tokyo ended 0.1 percent higher, adding to Tuesday’s gains to sit at more than two-year highs.
However, Nissan sank more than one percent following a report that factories routinely forged inspection documents for new vehicles, as a scandal mounted around Japan’s second-biggest carmaker days after being hit with a costly recall.
Hong Kong ended up 0.7 percent, with dealers also taking heart from a Chinese central bank decision at the weekend to cut the amount of cash some banks must keep in reserve in a bid to help small businesses.
Wellington and Jakarta also climbed but Sydney dipped 0.9 percent and Singapore was 0.3 percent off.
Shanghai, Taipei and Seoul were closed for public holidays.
Analysts said the dollar would likely move in line with who is considered the favorite to take the helm, with Warsh seen as a fiscal hawk and Powell more in line with Yellen’s wait-and-see policy to monetary tightening.
“Markets rightly or wrongly came to the view late last week that Warsh was the front-runner, and viewed him—rightly or wrongly—as having more hawkish proclivities than Janet Yellen,” Ray Attrill, global co-head of foreign-exchange strategy at National Australia Bank in Sydney, told Bloomberg News.
But he added that talk of Powell taking the top post have “seen the dollar giving back a little of the gains” from last week.
The next key driver for forex traders will be the release of payrolls figures on Friday, which could provide more of a clue about the Fed’s plans for raising interest rates.
In Asian trade the greenback was down against the yen and pound, while it also backtracked against most other high-yielding currencies including the Australian dollar, South Korean won and the Mexican peso.
It was down slightly against the euro but the single currency has come under pressure from political concerns as Spain is wracked with turmoil over Catalonia’s independence vote. With Bloomberg, AFP