Stocks rebounded Monday, tracking the movement of other Asian markets and following another record close on Wall Street.
The Philippine Stock Exchange index, the 30-company benchmark, climbed 61 points, or 0.8 percent, to close at 7,943.75, as all six major sectors advanced.
The heavier index, representing all shares, also rose 28 points, or 0.6 percent, to settle at 4,723.21, on a value turnover of P7.1 billion. Losers outnumbered gainers, 102 to 91, while 49 issues were unchanged.
Thirteen of the 20 most active stocks ended in the green, led by Metro Rail Stores Group Inc. which jumped 8.8 percent to P4.19 and retailer SSI Group Inc. which climbed 7.4 percent to P3.62. Food manufacturer Universal Robina Corp. gained 3 percent to P168.90.
Meanwhile, stocks in Asia rose, with a weaker yen supporting Japanese equities and technology stocks rebounding after their biggest weekly selloff since November.
Global equities are climbing back after a technology-sector selloff last week sparked by concerns about low volatility among the largest US companies.
The Dow in New York closed at a fresh all-time high thanks to a bounce in energy stocks, providing a positive lead for Asia, with a weaker yen helping Tokyo rally.
The dollar climbed above 111 yen Monday after Japan posted a surprise trade deficit for May. The Nikkei ended 0.6 percent higher, although troubled airbag maker Takata plunged 16.5 percent on reports it plans to files for bankruptcy and sell its assets to a US firm.
“With stocks on an uptrend for quite some time, and the global economy seen to keep expanding, the general risk positive sentiment is continuing,” Masafumi Yamamoto, chief currency strategist at Mizuho Securities in Tokyo, told Bloomberg News.
“In that regard, the yen is bound to come under selling pressure.”
Hong Kong added one percent and Shanghai finished up 0.7 percent, while Seoul gained 0.4 percent and Sydney 0.5 percent. Wellington and Taipei were also sharply higher.
In early European trade London added 0.7 percent, while Paris and Frankfurt each rose 0.8 percent.
With few drivers for business this week, eyes will be on the start of talks between Britain and the European Union on its extraction from the economic bloc.
The negotiations come after the ruling Conservative party lost its parliamentary majority in elections this month, weakening the government’s hand.
“How these negotiations evolve will likely hold the near term fate for the Pound,” said Stephen Innes, a senior trader at Oanda.
The pound, which tumbled in response to the election result, continues to struggle around two-month lows against the dollar.
The euro edged up to sit about $1.12 after Macron’s year-old Republique en Marche (Republic on the Move, REM) and its allies won 351 seats in the 577-seat National Assembly, giving the president a strong mandate to enact business-friendly reforms.
However, the currency’s gains were tempered by the fact the party did not secure the forecast landslide.
On oil markets prices dipped on lingering glut concerns as US companies’ rising production offsets big output cuts agreed by OPEC and Russia.
The Baker Hughes rig count showed another rise last week, Greg McKenna, chief market strategist at AxiTrader, said in a note. With AFP, Bloomberg