The stock market rebounded Friday on the stronger-than-expected economic performance in the third quarter of the year and on news that Donald Trump’s tax cuts had moved a step closer.
The Philippine Stock Exchange Index jumped 104.64 points, or 1.3 percent, to 8,311.08 on a thin value turnover of P5.6 billion. Gainers edged losers, 98 to 91, with 56 issues unchanged.
Manila Electric Co., the biggest retailer of electricity, added 1.1 percent to P322, while major property developer Ayala Land Inc. climbed 2.9 percent to P42.75.
SM Investments Corp. of retail tycoon Henry Sy Sr. advanced 2.6 percent to P965.50, while Universal Robina Corp., the largest snacks food maker, rose 3 percent to P139.
The rest of Asian markets built on the previous day’s gains and headed into the weekend on a positive note Friday.
House Republicans pushed through a landmark overhaul of the tax system on Thursday, providing the base for a record close in the Nasdaq on Wall Street at the end of a volatile week for global equities.
The plan, hailed by Trump and House Speaker Paul Ryan, would mark the biggest changes in three decades and see huge reductions for corporations and individuals.
Those gains filtered through to Asia, where Tokyo ended 0.2 percent higher, though an earlier rally was pared by a stronger yen.
Hong Kong added 0.8 percent and Sydney put on 0.2 percent. Singapore added more than one percent, while Taipei gained 0.7 percent. Wellington and Bangkok were also well up, while Jakarta gained 0.7 percent to put in on course for a record close.
But Shanghai dipped 0.5 percent and Seoul was marginally lower.
The broad gains came at the end of a week that saw heavy selling fueled by profit-taking and dealers’ worries that a rally in recent weeks had gone too far, pushing valuations too high.
“If the Senate can get its bill passed and if President Trump does end up with something on his desk he can sign into law stocks in Asia, America, and globally should catch a strong updraft and bid tone,” said Greg McKenna, chief market strategist at AxiTrader.
However, while the tax success in the House of Representatives came as a welcome boost, analysts warned there was still a long way to go for an agreement to get through the Senate.
The Republicans in the upper house have a wafer-thin majority and are already struggling to get all their members onside and there are worries the reforms could go the same way as the Obamacare repeal earlier in the year.
“Passing the legislation is a major win for President Trump but there is still work to be done if the bill is to make it through the US Senate,” Cai Lewis, senior adviser at ASR Wealth Advisers, said in a note.
“I have said before that I think that the bill will ultimately pass, which will make way for debate on the much-lauded US Infrastructure bill. Now to see if Trump has learnt the lessons from the failed Obamacare repeal attempts and takes a more pragmatic approach when trying to woo votes in the Senate.”
