The Philippine stock market sustained its positive momentum Thursday, with the benchmark index closing above the 6,200 level, as investors react to cooler February inflation and tariff hike delay in US.
The 30-company Philippine Stock Exchange index climbed 98.19 points, or 1.60 percent, to close at 6,219.96. The wider all-shares index also advanced by 34.56 points, or 0.94 percent, to finish at 3,699.10.
US and Asian stocks also traded higher due to one-month tariff delay for automakers under the US-Mexico-Canada Agreement (USMCA).
Regina Capital Development Corp. head of sales Luis Limlingan said the reported tariff delay fueled hopes for further exemptions amid the ongoing trade war.
The cooler-than-expected February inflation rate also boosted speculations the Bangko Sentral ng Pilipinas would reduce key interest rates in its next policy meeting.
All sectors ended in the green, led by mining and oil which rose 3.58 percent as gold prices inched higher, followed by services which went up 2.66 percent.
Value turnover amounted to P6.84 billion, with 108 stocks advancing, 82 declining and 59 remaining unchanged.
International Container Terminal Services Inc. jumped to 5.64 percent to P356, on the back of solid 2024 profits. Converge Information and Communications Technology Solutions Inc. declined 1.73 percent to P17.08.
Asian stocks climbed on Thursday as investors welcomed US President Donald Trump’s auto tariff delay and were expecting China to announce a large stimulus package.
The White House announced Wednesday an exemption on any autos coming through the United States, Canada and Mexico free trade pact, after Trump held talks with the “Big Three” US automakers—Stellantis, Ford and General Motors.
US automakers have been among the most exposed to Trump’s trade policy, which saw 25 percent blanket tariffs imposed on America’s neighbors earlier this week —with a lower rate for Canadian energy.
Wednesday’s tariff delay buoyed global markets and lifted the auto sector, with stocks in Shanghai, Tokyo and Seoul also rising Thursday.
Hong Kong’s stock exchange was up more than three percent. With AFP
“We have little details on what products the pause will cover — whether this will only apply to finished cars or also automotive parts — but given the exceptional degree of integration across North America for this industrial value chain, the decision is hardly surprising,” said Maeva Cousin of Bloomberg Economics.
A global bond selloff also spread to Asia on Thursday as geopolitical sways over the past weeks, including Ukraine peace efforts and trade tariffs, drove benchmark yields upwards.
Japanese 10-year yields hit 1.5 percent for the first time in more than a decade while bonds in Australia and New Zealand also saw their yields jump.
The selloff was triggered by a sharp rise in German bund yields after Berlin announced on Wednesday plans to massively boost defense spending.
– ‘Full confidence’ of hitting 5% –
Chinese stocks were also responding well to Beijing announcing its 2025 growth target of around five percent, at the start of its annual meeting of the National People’s Congress (NPC) on Wednesday.
China has vowed to make domestic demand its main economic driver despite facing persistent economic headwinds, and as an escalating trade war with the United States hit exports.
Beijing also announced a rare hike in fiscal funding, allowing its budget deficit to reach four percent this year.
Investors are hoping a huge fiscal stimulus package is coming.
China’s central bank chief said Thursday that the country would further cut interest rates in the coming year to boost the economy.
And another top Chinese economic official said the government has “full confidence” that it can reach its goal of five percent growth this year.
“The commitment to five percent means one thing: more stimulus is coming,” said Stephen Innes of SPI Asset Management.
“China isn’t leaving anything to chance — expect a mix of credit easing, fiscal firepower, and the occasional ‘suggestion’ to state banks to keep the machine humming.”
Alibaba was among Hong Kong’s top-performing stocks, with shares surging more than seven percent after the Chinese tech giant launched an artificial intelligence model it says can compete with DeepSeek.
Jakarta and Manila were up while Singapore and Wellington rose more modestly, and Sydney, Bangkok and Taipei were slightly down. With AFP