The stock market rebounded Wednesday after a rally in Wall Street overnight, ending a three-day slump as investors welcomed news the US decided to defer tariffs on Chinese products.
The Philippine Stock Exchange Index rose 70.20 points, or 0.9 percent, to 7,858.65 on a value turnover of P6.6 billion. Gainers beat losers, 112 to 83, with 40 issues unchanged.
Jollibee Foods Corp., the biggest fast-food chain, rallied 7.7 percent to P234.20, while International Container Terminal Services Inc., the largest port operator, advanced 6.2 percent to P127.50.
Universal Robina Corp., the biggest snack food maker, climbed 4 percent to P169.50, while major property developer Ayala land Inc. gained 3.5 percent to P48.90.
The rest of Asian equities rose Wednesday as investors breathed a collective sigh of relief at news the US had delayed tariffs on a swathe of Chinese goods, easing tensions in their bitter trade war.
The US gains filtered through to Asia where Hong Kong edged up 0.3 percent in the afternoon.
The rise helped reverse some of the more than two percent lost in the previous two days from concerns about rising political tension that saw the city’s airport—a major international hub—shut down for two days.
The increasingly violent demonstrations have also been referred to as “terrorism” by Beijing, stoking fears China will take a tougher line, with observers still concerned about the outlook for further unrest.
Shanghai added 0.4 percent but early big gains there and in Hong Kong were pared after data showed Chinese factory output expanded last month at its slowest pace in 17 years as the economy struggles with the impact of the trade war and a weakening global demand.
Tokyo ended one percent higher and Singapore gained 0.1 percent, Seoul added 0.7 percent, Sydney put on 0.4 percent and Taipei put on 0.6 percent. There were also gains in Mumbai, Jakarta and Bangkok though Wellington dipped.
Donald Trump also said top-level negotiators for both sides had held “very productive” talks by phone, while an official told AFP the president’s top trade representative would speak again to his opposite number in two weeks.
Trump said the decision was made to protect consumers heading into the holiday shopping season, with 10 percent levies on electronics goods—which were due on September 1—put off until December 15.
“By the time December comes around the US will be less than one year away from the next presidential election, and Trump won’t want to be remembered as the Grinch,” said David Madden, market analyst at CMC Markets UK.
The news provided some much-needed respite for investors, who have come under intense pressure from a range of issues including concerns about the global economy, Hong Kong’s protests, the trade war and Brexit.
Wall Street’s three main indexes surged on the announcement, with the tech-rich Nasdaq up two percent, and the Dow and S&P 500 more than one percent higher. With AFP