The stock market extended a rally Thursday as investors cheered the low August inflation report that showed the consumer price index dropping to a 35-month low of 1.7 percent from 2.4 percent in July.
The Philippine Stock Exchange Index rose 57.33 points, or 0.7 percent, to 7,898.19 on a value turnover of P7.1 billion. Gainers beat losers, 113 to 77, with 53 issues unchanged.
The low august inflation may prompt monetary authorities to further reduce the benchmark interest rates in their meeting later this month.
Metro Pacific Investments Corp., which is into toll roads, water, and electricity generation, infrastructure, and hospitals, climbed 4.8 percent to P5.23, while Megaworld Corp., the biggest lessor of office spaces, gained 3.2 percent to P5.18.
Filinvest Land Inc. of the Gotianun Group advanced 3.1 percent to P1.67, while major property developer Ayala Land Inc. added 2.3 percent to P48.50.
Most Asian equities and currencies, meanwhile, rallied Thursday, building on the previous day’s advance as investors were cheered by a number of positive developments on trade, Hong Kong and Europe.
Markets were already on an upward trajectory after the leader of Hong Kong on Wednesday withdrew a controversial extradition bill that had sparked months of sometimes violent protests in the financial hub.
But the good news kept coming as the day wore on, with news that Italy had formed a new moderate, pro-European government, while British MPs moved closer to passing a law preventing a no-deal Brexit.
Then on Thursday morning, China announced it would resume trade talks with the United States in Washington next month.
Chinese Vice Premier Liu He spoke to US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin by phone Thursday morning, the commerce ministry statement said, and agreed to “work together and take practical actions to create favorable conditions for consultations.”
The announcement provided a small sign of progress in the long-running row that has dragged on the global economy and stock markets.
Asian equities were broadly in positive territory, tracking a healthy lead from Wall Street, where the S&P 500 moved to within touching distance of a new record high.
Tokyo ended more than two percent higher and Shanghai jumped one percent, with Sydney 0.9 percent up.
Seoul gained 0.8 percent, Singapore 0.3 percent, and Taipei and Wellington 0.9 percent apiece. Bangkok and Jakarta were also well in positive territory.
However, Hong Kong fell 0.6 percent in the afternoon. Having soared almost four percent Wednesday on the back of Chief Executive Carrie Lam’s shock decision to withdraw the bill, profit-takers moved in, while there was also some concern the offer will not be enough to avert more unrest.
Adding to the positive vibe were comments from China’s cabinet flagging a cut in the amount of cash banks must keep in reserve, a move aimed at releasing more cash into the stuttering economy. With AFP