Stocks rose Tuesday to end a four-day slump, as investors picked up bargains after the market index fell to a two-year low.
The Philippine Stock Exchange index, the 30-company benchmark, gained 42 points, or 0.7 percent, to close at 6,330.55. The index was still down 8.9 percent since the start of the year.
The heavier index, representing all shares, also rose 17 points, or 0.5 percent, to settle at 3,645.46, on a value turnover of P4.7 billion.
Twelve of the 20 most active stocks ended in the green, led by SM Prime Holdings Inc., which climbed 3.2 percent to P19.82.
Robinsons Retail Holdings Inc. advanced 3 percent to P65, while Bank of the Philippine Islands added 2.3 percent to close at P83.10. Megaworld Corp. rose 1.7 percent to P3.58.
Meanwhile, Asian stocks rose outside of Japan as China kept its yuan fixing little changed, while oil extended declines to a seventh day.
Australian equities rose for the first time this year, while the Shanghai Composite Index swung between gains and losses following a $1.4 trillion rout. Japanese shares fell as they traded for the first time this week.
Concern that turmoil in China’s financial markets will spread to the economy has helped spur a selloff in global equities and commodities this year, with crude tumbling 15 percent.
Shanghai stocks swung sharply in early trade Tuesday fuelled by ongoing worries about China’s economy while most other Asian markets enjoyed a small bounce a day after suffering another painful sell off.
Having sunk more than 5 percent Monday—taking its losses this year to 15 percent already—Shanghai rallied in the first few minutes before quickly slipping into the red then bouncing back.
The swift movements have become common on the volatile index, which has been hammered by a string of weak economic data out of China, while authorities’ bungling of last week’s rout has also sowed doubt.
Beijing’s weakening of its yuan currency—raising questions about the opaqueness of its exchange rate policy—also played a key role in the equities downturn.
That has in turn led to massive losses around the world, with several major bourses suffering their worst start to a year on record.
“Worries about China persist,” Shane Oliver, head of investment strategy in Sydney at AMP Capital Investors, told Bloomberg News.
And he warned: “It’s too early to say that we’ve found the bottom until we see more stability in the Chinese currency and until we see more confidence regarding global growth.”
Shanghai was up 0.2 percent in mid-morning trade, while Hong Kong, which also tumbled Monday, was up 0.6 percent.
Tokyo, which was closed Monday for a holiday, slipped 2.12 percent by lunch as dealers there played catch-up with the rest of the region and the yen strengthened against the dollar.
The Japanese unit has risen more than two percent on the greenback so far this year.
Sydney added 0.3 percent and Seoul was 0.4 percent higher.
US markets provided some positivity, with the Dow and S&P 500 moving higher. However, investors remain on edge over China, while oil prices head towards $31 a barrel, hit by a supply glut, anaemic demand and a weak global economy.
Crude slipped below $32 for the first time in 12 years on signs key producer Iran could be allowed to export the commodity within weeks as the West prepares to lift embargoes after a deal over its nuclear program.
On Tuesday morning US benchmark West Texas Intermediate was down 0.7 percent and Brent lost 0.6 percent. with AFP