Stocks fell Tuesday, amid a global sell-off Tuesday following heavy losses in New York and Europe while fresh opinion polls fan fears that Britain will vote to leave the European Union.
The Federal Reserve will conclude a two-day meeting Wednesday and while it is not expected to hike interest rates for several months, investors hope it will give some guidance on monetary policy. Opinion is divided on whether the Bank of Japan will add to its stimulus when it finishes its own gathering Thursday.
With just over a week to go until Britain’s referendum, a series of polls have put the pro-leave camp in front, raising the possibility that its four-decade ties to the bloc could be cut.
The prospect of one of the biggest economies in the EU breaking away has led to warnings of a new wave of world market turmoil as they struggle to recover from the panic that wiped trillions off valuations at the start of the year.
The Philippine Stock Exchange index, the 30-company benchmark, fell 94 points, or 1.2 percent, to close at 7,460.12. This cut this year’s market gains to 7.3 percent.
The heavier index, representing all shares, also dropped 52 points, or 1.2 percent, to settle at 4,455.98, on value turnover of P6.1 billion. Losers outnumbered gainers, 134 to 48, while 36 issues were unchanged.
Only three of the 20 most active stocks ended in the green, led by Philex Petroleum Corp. which jumped 11 percent to P5.05. Security Bank Corp. rose 0.8 percent to P198, while property developer Ayala Land Inc. gained 0.3 percent to P37.10.
Meanwhile, Tokyo stocks ended down 1 percent, following a 3.5-percent loss Monday, with exporters hit by a surging yen.
The Japanese currency has rallied over the past week as traders look for safer investments to hedge against uncertainty.
The dollar bought 105.74 yen, down from 106.19 yen in New York, while the euro was at 119.35 yen, having fallen to a more than three-year low of 119 yen Monday.
The strength of the yen prompted Japanese Finance Minister Taro Aso on Tuesday to repeat a warning that officials were ready to intervene in currency markets to tame the unit. with AFP