Stocks bounced back Friday on bargain-hunting, joining a rally in other Asian and European markets after two days of ferocious selling sparked by higher US interest rates, trade war fears and attacks by President Donald Trump on his “crazy” central bank.
The Philippine Stock Exchange index surged 120.39 points, or 1.8 percent, to 7,004.77 on a value turnover of P5.3 billion. Gainers overwhelmed losers, 127 to 56, with 47 issues unchanged.
Universal Robina Corp., the biggest snack food maker, advanced 7 percent to P137, while Security Bank Corp., the sixth-biggest lender in terms of assets, climbed 5.8 percent to P140.90.
Now Corp., which is bidding to become the third major telecommunications firm, jumped 28.7 percent to P5.61, while GT Capital Holdings Inc. of tycoon George Ty rose 4.3 percent to P700.
Equities across the rest of Asia, meanwhile, closed in the green after another topsy-turvy session that saw stocks initially suffer further heavy losses before bouncing back strongly.
European markets followed Asia’s lead, with Paris and Frankfurt enjoying a strong opening, both up more than one percent.
The fightback followed two days that have seen something approaching panic in global equity markets, as investors took fright in the face of rising US interest rates and an intensifying trade war between Washington and Beijing.
The global sell-off was also due in part to Trump describing the policies of the Federal Reserve as “loco” and “crazy,” sparking concerns over the independence of the world’s top central bank.
Tokyo closed near half a percentage point higher after a see-saw session that saw it open in the red but quickly pare losses.
Elsewhere in Asia, China’s benchmark Shanghai Composite climbed by 0.9 percent after suffering more than most in the recent capitulation.
Official data released earlier Friday showed that China’s trade surplus with the US hit a new record in September, despite Washington’s tariffs—adding fuel to a spiraling trade war between the world’s top two economies.
Seoul, Hong Kong, Sydney and Wellington also enjoyed strong gains.
The futures market pointed to gains worth several hundred points when the Dow Jones opens later Friday, after the US index lost more than 1,300 points in a two-day stocks bloodbath.
“There’s a semblance of sanity returning to the markets, but we are no nearer a significant recovery,” Stephen Innes, head of trading for Asia Pacific at OANDA, said in a commentary.
Markets are “exhausted after the most significant sell-off in global equities since February,” he added.
After a volatile session on Wall Street, the Dow Jones ended 2.1 percent down, taking its losses for the week to more than five percent and closing at the lowest levels in months.
Some experts warned that the correction, which came after many indices had hit multi-year highs, would be more than a flash in the pan.
“When we have a recalibration in values, it’s not surprising that it takes more than one day,” said Art Hogan, chief market strategist at B. Riley FBR.
“In these kinds of moves, it usually takes three days to wash out.” With AFP