The stock market fell Thursday along with the rest of Asia after US lawmakers passed a bill supporting Hong Kong’s civil rights, sparking fears it could derail delicate China-US trade talks.
The Philippine Stock Exchange Index lost 79.17 points, or 1 percent, to 7,818.89 on a value turnover of P5.7 billion. Losers routed gainers, 157 to 38, with 41 issues unchanged.
Semirara Mining and Power Corp. of the Consunji Group slumped 9.6 percent to P19.76, while parent DMCI Holdings Inc. dropped 4 percent to P6.70.
Metro Pacific Investments Corp., which is into toll roads, water and electricity distribution, hospitals and infrastructure, declined 4.7 percent to P4.42, while Jollibee Foods Corp., the biggest fast-food chain, fell 2.6 percent to P198.60.
Hong Kong, meanwhile, led losses as Asian markets tumbled on Thursday.
Investors already nervous about the progress of negotiations were sent running for the hills after both houses of Congress overwhelmingly agreed to the bill and sent it to be signed by President Donald Trump.
Hong Kong shares tanked more than two percent at one point before clawing back slightly to sit 1.6 percent down by the close. But there remains a lot of nervousness that the key trade and financial hub could take a heavy hit if its status is revoked, leaving it exposed to similar US tariffs to the mainland.
Tokyo ended 0.5 percent lower and Shanghai finished 0.3 percent off.
Sydney, Singapore, Seoul, Jakarta and Taipei also retreated but were off early lows.
The Hong Kong Human Rights and Democracy Act requires the president to annually review the city’s favorable trade status and threatens to revoke it if the semi-autonomous territory’s freedoms are quashed.
They also passed legislation banning sales of tear gas, rubber bullets and other equipment used by Hong Kong security forces in putting down the protests, which are now in their sixth month.
Beijing said Thursday it “strongly” condemned the move and was ready to take measures to “resolutely fight back.”
Officials had already summoned a top US diplomat on Wednesday over the Senate’s passing of the bill and warned of “strong” countermeasures should it be signed into law.
The White House has not threatened to veto the measure and Trump is expected to sign it, according to a source familiar with the matter.
The move comes just as US and Chinese negotiators try to put the finishing touches to a much-vaunted mini trade deal that is seen as the first part of a wider agreement. Markets had been rallying in recent weeks on optimism it will be signed off soon.
“China’s strong response to the Hong Kong bill news is something to be taken seriously in terms of how it impacts on the trade discussions,” said National Australia Bank’s Ray Attrill.
“Who knows where we land here? All we’d say for now is that we have a good idea where markets will reprice if and when a phase-one deal gets done and depending on whether it includes some tariff rollbacks.
“But what happens between now and then is frankly anyone’s guess.” With AFP