Stocks fell for the third day, as the Federal Reserve signaled it may raise interest rates in December and Chinese corporate earnings disappointed.
The Philippine Stock Exchange index, the 30-company benchmark, lost 54 points, or 0.8 percent, to close at 7,134.26 on Friday. The gauge was also down 1.3 percent since the start of the year.
The heavier index, representing all shares, dropped 24 points, or 0.6 percent, to settle at 4,119.28, on a value turnover of P8.1 billion. Losers outnumbered gainers, 101 to 62, while 49 issues were unchanged.
Cebu Air Inc., operator of budget carrier Cebu Pacific, emerged as the biggest gainer among the 20 most active stocks, as it climbed 3.2 percent to P89.20. Property developer Robinsons Land Corp. rose 1.2 percent to P30.60, while food manufacturer Universal Robina Corp. added 0.8 percent to close at P200.60.
Meanwhile, most Asian stocks also traded lower Friday, except for Japanese stocks. Japan’s central bank slashed its growth forecasts and put back an inflation timetable as the country’s economy stutters, but its decision to hold off any fresh stimulus sent the yen up and Tokyo stocks rallying.
Economists had come to a broad consensus the Bank of Japan would lower its expectations for the world’s number three economy following a string of weak data, including on trade, manufacturing and investment.
The decision not to further loosen monetary policy came after the European Central Bank indicated it could ramp up its own program in December while China last week slashed interest rates for a sixth time in a year.
And on Wednesday the Federal Reserve suggested it would raise US interest rates, confounding expectations it would delay a move until the new year owing to a weak global outlook.
The BoJ forecast growth to come in at 1.2 percent in the fiscal year to March 2016, down from an earlier 1.7 percent projection. It also expects to hit its 2 percent inflation target in the six months ending March 2017—about half a year later than previously expected.
It said the revision was “due to the flattening of exports against the background of the slowdown in emerging economies and to the sluggishness in private consumption”.
After more than two years of huge government spending and BoJ bond-buying stimulus—pushed by Prime Minister Shinzo Abe—the Japanese economy is still unable to gain traction and inflation remains anaemic. The tepid readings have brought into question Abe’s growth blitz. With Bloomberg, AFP