The stock market bounced back Tuesday on window dressing for the end of the first quarter and big gains on Wall Street overnight.
The Philippine Stock Exchange Index advanced 114.65 points, or 1.4 percent, to 8,047.03 on a value turnover of P6.6 billion. Gainers overwhelmed losers, 148 to 64, with 33 issues unchanged.
Metropolitan Bank & Trust Co., the second-biggest lender in terms of assets, rose 3.4 percent to P85.80, while Bank of the Philippine Islands, the third-largest bank, surged 5.2 percent to P115.
Alliance Global Group Inc. of tycoon Andrew Tan climbed 2.7 percent to P13.08, while major property developer Ayala Land Inc. gained 2.5 percent to P41.10.
Meanwhile, a wave of optimism flowed across Asian markets on Tuesday as fears of a US-China trade war receded.
Speculation that Kim Jong Un was on a surprise secret visit to Beijing also lifted spirits—and the South Korean won—as the North Korean leader prepares for possible nuclear talks with Donald Trump.
Hong Kong added 0.8 percent and Sydney ended 0.7 percent higher. Singapore put on 0.4 percent and Wellington rose 0.9 percent, while Taipei and Jakarta were all healthily up.
Seoul rose 0.6 percent and the won climbed more than one percent against the dollar on speculation Kim was visiting Beijing. It would be his first trip outside North Korea since assuming power at the end of 2011.
If confirmed, the visit would mark the latest development in the fast-paced shift towards an easing of tensions on the Korean peninsula.
Shanghai ended up 1.1 percent. Chinese investors, known for their often bizarre and superstitious buying choices, sought to make a profit off the rumored visit. Some firms with Jin in their name—the Mandarin character for “Kim” is pronounced “Jin” and means “gold”—soared.
The gains on all markets chipped away at the sharp losses suffered last week in response to the White House’s decision to hit China with billions of dollars in tariffs.
That came weeks after Washington announced levies on steel and aluminum imports—which have since been postponed for some countries—and sparked talk of a trade war that could batter the global outlook.
However, nerves have been soothed this week as it emerged that high-level talks had been taking place between the world’s top two economies to find an agreement.
“Our base case is that there won’t be an all-out trade war,” Craig Macdonald, at Aberdeen Standard Investments, told Bloomberg News. “It’s a way of applying pressure to get some wins by Trump.”
However, he said there would likely still be some volatility down the line, adding: “Our sense is that they will get some wins rather than all-out war, but it’s not something you can just dismiss. The tail risk is higher.”
US markets surged, with the Dow and S&P 500 almost three percent higher and the Nasdaq piling on 3.3 percent—its biggest one-day rise since August 2015.
Those strong performances continued in Asia, with Tokyo closing 2.65 percent higher thanks to a drop in the yen against the dollar, as traders shift out of assets considered safe in times of uncertainty and turmoil.