The stock market extended a rally for the third straight day Friday on renewed hopes for trade talks between the US and China.
The Philippine Stock Exchange Index rose 86.85 points, or 1.1 percent, to 7,979.66 on a value turnover of P9.7 billion. Gainers overwhelm losers, 126 to 72, with 35 issues unchanged.
PLDT Inc., the biggest telecommunications firm, advanced 4.8 percent to P1,179, while rival Globe Telecom Inc. climbed 5.5 percent to P2,030.
International Container Terminal Services Inc., the largest port operator, gained 4.5 percent to P135.80, while Megaworld Corp., the biggest lessor of office spaces, rose 2.4 percent to P5.13.
Most Asian equities, meanwhile, gained Friday after China said it would not retaliate against the latest US tariffs, setting up a positive end to a volatile week.
However, the arrest of activists in Hong Kong fueled fresh worries about violent protests in the city.
With huge levies on goods worth hundreds of billions of dollars due to kick in over the weekend, the long-running trade war between the world’s top two economies steps up a gear, and observers are fretting the row could drag on.
But Beijing on Thursday appeared to want to dial down the tensions, saying it would hold off on responding in kind, as it has previously warned it would do.
“The escalation of the trade war is not beneficial to China, and it is not beneficial to the United States,” commerce ministry spokesman Gao Feng said.
Later, President Donald Trump said talks between the two were planned for later Thursday, though there was no indication any had taken place by early Asian trade.
The news came as a big relief for markets, which have been hit by volatility over the standoff after both sides last week unveiled fresh tariffs, with Trump slamming Beijing but days later saying they had held phone talks and negotiations would resume soon.
“The more measured tone in deciding to focus on next month’s meeting to discuss removing the extra duties has seen some optimism start to creep back in,” said Michael Hewson, chief market analyst at CMC Markets UK.
All three main US indexes ended with steep gains, which filtered through to Asia.
Tokyo rose 1.2 percent, Sydney and Taipei each piled on 1.5 percent, Seoul jumped 1.8 percent and Wellington gained 1.7 percent. Bangkok and Jakarta also posted healthy gains.
However, after starting the day more than one percent higher, Hong Kong went into reverse in the afternoon as investors fret over the reaction to the arrest of leading democracy campaigners ahead of a major demonstration at the weekend.
“Now people really fear emergency law could be implemented in Hong Kong,” said Jackson Wong, asset management director at Amber Hill Capital. “Property stocks are sold most, because if Hong Kong is not different from other Chinese cities, it’s hard to retain talent. And property prices won’t find support.”
Shanghai was also hit, ending down 0.2 percent. With AFP
