The stock market climbed Thursday on hopes for an easing of the China-US trade war, while energy firms in Asia also enjoyed a much-needed bounce as oil prices stabilized.
The Philippine Stock Exchange Index added 29.51 points, 0.4 percent, to 6,952.59 on a value turnover of P6.5 billion. Gainers edged losers, 90 to 89, with 48 issues unchanged.
BDO Unibank Inc., the biggest lender in terms of assets, led other banks in advancing after the Monetary Board, the policy-making body of the Bangko Sentral ng Pilipinas, raised interest rates by another 25 basis points.
BDO rose 3 percent to P118, while Metropolitan Bank & Trust Co., the second-largest bank, gained 4.2 percent to P69.80. Security Bank Corp., the sixth-biggest lender, climbed 2.2 percent to P139
Conglomerate Metro Pacific Investments Corp. rose 3 percent to P139.
The pound, meanwhile, held up after British Prime Minister Theresa May narrowly won support for her Brexit deal from cabinet members, though Apple suppliers faced renewed selling.
Fears about the trade war, rising Federal Reserve interest rates, tensions within the European Union and slowing growth in most economies have forced stocks south for the past few months.
But after another battering for much of this week—this time from the oil sector—traders were given some hope by reports that China had submitted a series of trade concessions to the Trump administration.
Hong Kong rose 1.8 percent Thursday, with market heavyweight Tencent surging almost six percent on the back of forecast-beating earnings.
Shanghai ended up 1.4 percent, Seoul added one percent, Singapore gained 0.4 percent and Sydney rose 0.1 percent, with Taipei, Mumbai and Jakarta also up.
However, Tokyo ended slightly lower, with big losses in Apple-linked firms after another key supplier lowered its earnings forecasts, fueling worries about demand for the US titan’s iPhones.
Bloomberg said officials had suggested the measures as they try to reach a deal ahead of a G20 summit this month, where Donald Trump is expected meet Chinese President Xi Jinping.
The report said the offers were short of the major reforms being sought by the White House but cited an unnamed source as saying talks were ongoing and constructive.
Earlier this week, Trump’s top economic adviser Larry Kudlow said both sides were “having communications at all levels” on trade.
However, with both sides digging their heels in, expectations for a breakthrough are low.
“On the surface (the latest report is) a positive sign,” said Stephen Innes, head of Asia-Pacific trade at OANDA.
“However, in this instance I suspect equity traders will be more focused on the… ‘long road that lies ahead’ as we can only assume it will be filled with numerous potholes. As such we could expect risk sentiment to continue shading to the dark side of the equation.”
The recent slump in energy stocks came to a halt after an uptick in crude prices Wednesday, which extended into Asia, on speculation Opec will cut output more than recently stated. With AFP