The stock market tumbled further Wednesday, tracking fresh losses on Wall Street as investors fret about rising US Treasury yields and speculation that interest rates will rise four times this year.
The Philippine Stock Exchange Index lost 42.45 points, 0.6 percent, to a new one-year low of 7,557.91 on a value turnover of P6.2 billion. Losers routed gainers, 125 to 61, with 49 issues unchanged.
Manila Electric Co., the biggest retailer of electricity, sank 3.9 percent to P307, while SM Investments Corp. of retail tycoon Henry Sy Sr. fell 1.4 percent to P882.50.
Casino operator Bloomberry Resorts Corp. slumped 4 percent to P12.10, while International Container Terminal Service Inc., the largest port company, tumbled 3.8 percent to P85.40
The rest of Asian markets also went into reverse Wednesday.
Tokyo ended 0.3 percent lower as a weaker yen was unable to provide support, while pharmaceutical giant Takeda plunged seven percent after it ramped up its offer for Irish rival Shire.
Hong Kong shed more than one percent and Shanghai slipped 0.4 percent.
Singapore dropped 0.7 percent, Seoul was 0.6 percent off and Taipei lost 0.2 percent.
Sydney and Wellington were closed for ANZAC day.
Technology firms were once again in the firing line in response to a plunge in Google parent Alphabet on costs worries while Apple suffered a fifth straight loss because of concerns over the crucial smartphone sector.
The yield on benchmark 10-year Treasuries broke three percent on Tuesday for the first time in more than four years as surging oil prices and the impact of Donald Trump’s huge tax cuts fan inflation expectations.
There is a fear the higher yields will divert investor attention from equities as safe-bet government debt looks more attractive.
That, along with an improving economy, has fanned talk the Federal Reserve will have to lift borrowing costs more than expected this year.
The dollar held most of its recent gains against its peers on expectations of higher rates and Wako Ogawa, director of foreign-exchange sales at Deutsche Securities, told Bloomberg News: “I expect a further rise in Treasury yields to continue to spur buying of the dollar.”
All three main indexes in New York ended deep in the red, with the Dow clocking up a fifth successive loss, with sentiment also dented when construction and mining equipment giant Caterpillar gave a subdued earnings outlook.
“The sudden surge in US yields had already been weighing on equity sentiment, but when you factor in the skid in technology stocks and Caterpillar’s less than reassuring outlook, it makes for a very rough day on the trading floor,” said Stephen Innes, head of Asia-Pacific trading at OANDA.
Technology firms were among the worst performers again after a big sell-off in their US counterparts including Apple, Amazon, Alphabet, Facebook and Microsoft.
Hong Kong-listed AAC Technologies tumbled 2.1 percent, Apple supplier TSMC shed 0.9 percent in Taipei and South Korean titan Samsung eased 0.2 percent. With AFP