Philippine stocks slipped again Tuesday, falling below the 6,200 level, amid uncertainty over US President Donald Trump’s tariff policy.
The bellwether Philippine Stock Exchange index dropped 32.17 points, or 0.52 percent, to close at 6,159.85, while the broader all-shares index went down by 34.13 points, or 0.93 percent, to settle at 3,657.18.
“Philippine shares dropped once again as uncertainty over Trump’s tariff plans weighed on sentiment,” Regina Capital Development Corp. head of sales Luis Limlingan said.
Trump and his administration earlier reported plans to start implementing higher tariffs on imports starting April 2, 2025.
Analysts said investors were also hoping that US trade policies would be less aggressive.
Sectoral indices in the PSE ended mixed. Property and services advanced 0.45 percent and 0.02 percent, respectively.
Mining and oil fell by 3.02 percent, holding firms by 1.42 percent, industrial by 0.74 percent and financials by 0.56 percent.
Value turnover reached P4.34 billion, with 84 advancers and 107 decliners.
SM Prime Holdings Inc. rose 1.08 percent to P23.40, while Semirara Mining and Power Corp. fell 4.6 percent to P35.30.
Asian equities diverged Tuesday, as investors struggled to extend Wall Street’s rally despite easing fears over Donald Trump’s planned tariffs, while traders were also looking ahead to the release of key US inflation data.
A surge in tech giants including Tesla and Nvidia helped New York markets higher, with sentiment buoyed by indications from the White House that next week’s glut of levies would be less severe than feared.
Trump has dubbed April 2 “Liberation Day” as he pledges to impose reciprocal tariffs on trading partners in an effort to remedy practices that Washington deems unfair.
Since resuming office in January, Trump has pursued a hardball policy approach, taking aim at friend and foe alike, sending shivers through markets and fanning fears about the global economy.
In recent days, he has suggested some countries could be given exemptions or reductions from next week’s measures, giving investors a much-needed sense of optimism.
Market-watchers say the final outcome would likely see the tariffs changed after negotiations.
“The recent wave of doom-laced narratives — fueled by politically skewed consumer sentiment surveys and a flood of bearish op-eds — looks increasingly overcooked,” said SPI Asset Management’s Stephen Innes.
And IG market analyst Tony Sycamore added: “The expectation is that the process will be more organized and structured than previous actions. Whatever numbers are announced on 2 April are likely to be negotiated down from there.”
Still, the president did provide a jolt by warning countries that bought crude and gas from Venezuela would face steep tariffs, a move that could hit China and India among others.
Beijing on Tuesday accused Washington of “interfering in Venezuela’s internal affairs”.
Asian stocks fluctuated through the day.
Tokyo, Sydney, Singapore, Taipei, Jakarta, Mumbai and Wellington rose while Shanghai was flat but Bangkok and Manila dropped.
Hong Kong sank 2.4 percent, weighed by a drop of around six percent in Chinese tech giant Xiaomi after it raised $5.5 billion in a mega share sale as it looked to expand its electric vehicle business.
The deal, which comes after a similar move this month by EV firm BYD, stoked worries about market liquidity.
Traders were also cashing in recent profits — particularly among high-flying tech firms — following an impressive surge in the Hang Seng Index that has seen it pile on around 20 percent since the start of the year.
Seoul also fell, despite a surge of more than three percent in South Korean automaker Hyundai following news of a $21 billion US investment.
London, Frankfurt and Paris opened higher.
Eyes are also on the release this week of US personal consumption expenditure data, which is the Federal Reserve’s favored inflation metric.
The reading will be closely monitored amid warnings that prices will likely go up because of Trump’s tariffs.
Atlanta Fed chief Raphael Bostic said the measures would likely mean the bank cuts interest rates just once this year.
“I moved to one mainly because I think we’re going to see inflation be very bumpy and not move dramatically and in a clear way to the (Fed’s) two percent target,” he told Bloomberg Television on Monday.
“Because that’s being pushed back, I think the appropriate path for policy is also going to have to be pushed back.”
Oil prices edged up to extend Monday’s gains of more than one percent that came in response to Trump’s warning on Venezuelan crude. With AFP