The stock market rose Tuesday on optimism the US and China may find a solution to their long-running tariffs spat.
The Philippine Stock Exchange Index added 26.43 points, or 0.3 percent, to 7,893.94 on a value turnover of P8.5 billion. Losers, however, beat gainers, 122 to 80, with 54 issues unchanged
SM Prime Holdings Inc., the largest integrated property company owned by the Sy Group, advanced 3.5 percent to P36.70, while Megaworld Corp., the biggest developer and lessor of offices spaces, climbed 3.3 percent to P4.97.
Pilipinas Shell Petroleum Corp., the smaller of the two oil refineries, gained 2.6 percent to P33.80, while Bank of the Philippine Islands, the third-largest lender in terms of assets, rose 1.3 percent to P91.50.
The rest of Asian markets crept up Tuesday but dealers remained on edge following contrasting economic data out of Europe and the US as investors awaited developments in the China-US trade standoff.
Hong Kong gained 0.2 percent following six days of losses and Shanghai ended up 0.3 percent, while Tokyo finished 0.1 percent higher.
Seoul put on 0.5 percent and Singapore added 0.3 percent with Mumbai and Bangkok also up.
Sydney and Taipei were barely moved, while Wellington dipped 0.1 percent and Jakarta sank more than one percent.
After last week’s dovish shift by global central banks, dealers were in wait-and-see mode, with the key focus now on whether Washington and Beijing can find a solution to their long-running tariffs spat.
Optimism over the issue took a jolt at the weekend when Donald Trump said he did not want to make a piecemeal deal—an option that had been floated—and instead was determined to sign a complete agreement.
He also said he saw no need to strike it before the November 2020 election.
Top-level negotiations are due to start in Washington next month.
Observers said there was some relief that a Chinese delegation’s visit to farms in the rural US was cancelled at the request of Treasury officials.
News of the cancellation last week had sparked fears that the Chinese side had pulled out and hit New York stocks as dealers feared another breakdown in talks.
Bloomberg News reported China had given the OK to several firms to buy US soybeans free of tariffs, having promised to buy more US agricultural goods to move talks along.
European markets ended with deep losses after figures indicating a sharp contraction in German factory activity last month, marking the worst in a decade for the region’s biggest economy.
But that was followed by figures showing a slight pick-up in US manufacturing, easing concerns about a feared weakening of the world’s top economy.
There is a worry that the readings could tempt the Federal Reserve from pushing on with further interest rate cuts.
Forex traders will be keeping a close eye on London, where judges will rule on whether Prime Minister Boris Johnson’s decision to call an extended parliamentary recess was legal ahead of an October 31 Brexit date. With AFP
