Stocks rebounded Friday on window dressing at the end of the second quarter following a tumultuous first half that saw sharp losses around the world.
The Philippine Stock Exchange index, the 30-company benchmark, gained 127 points, or 1.8 percent, to close at 7,193.68 Friday, as all six major sectors advanced.
The heavier index, representing all shares, also climbed 69 points, or 1.6 percent, to settle at 4,392.78, on a value turnover of P7.1 billion. Advancers led losers, 120 to 82, while 43 issues were unchanged.
Eighteen of the 20 most active stocks ended in the green, led by ISM Communications Corp. which jumped 28.4 percent to P3.30. SM Prime Holdings Inc., the property unit of the Sy family, climbed 5 percent to P35.95, while DoubleDragon Properties Corp. rose 4.5 percent to P25.50.
Newly-listed D.M. Wenceslao & Associates Inc. slumped 14.5 percent to P10.26.
Meanwhile, other Asian markets mostly rose Friday. Trading floors witnessed heavy selling in April-June as the US and China, the two biggest economies exchanged threats of tariffs—and in some cases imposed them—on billions of dollars of imports, fueling fears for global growth.
An increasing source of concern for many investors is China, where the main stock market is in bear territory after losing more than 20 percent from a recent peak and the yuan continues to struggle.
Many analysts warn any trade war with the US would likely hurt Beijing more, with growth in the Asian giant already showing signs of slowing this quarter and authorities looking to provide support.
That comes just as the US perks up with the Federal Reserve expected to press ahead with interest rate hikes this year and next, and expansion likely to impress further.
The ongoing US strength “implies that the Fed will keep hiking rates because it will need to”, said Greg McKenna, chief market strategist at AxiTrader.
“It implies that bonds will continue to have an upward bias, it implies that earnings for US companies should do OK, and it implies that the US will stand out as an investment destination as the de-synchronization of global growth sees other blocs and nations lag behind,” McKenna said.
With investors uncertain about the next moves by Donald Trump, markets fluctuated in early trade despite a positive lead from Wall Street, but most were in positive territory in later trade.
Tokyo ended 0.2 percent higher, with electronics giant Sharp soaring more than 15 percent after saying it would cancel a plan to raise some $1.8 billion through a public offering, citing the China-US trade frictions.
Hong Kong Kong jumped more than one percent in the afternoon while Shanghai closed up more than two percent—both markets having been at the forefront of much of the selling in recent weeks.
Dealers also welcomed the release by China of a narrower “negative list” of sectors foreign firms were restricted from investing in as Beijing looks to open up its economy as it prepares for a possible trade war.
Singapore added 0.6 percent and Singapore 0.5 percent while Taipei and Jakarta all posted strong gains.
However, Sydney and Bangkok went into reverse.
On currency markets the dollar dipped against the yuan but the Chinese unit is about two percent down over the week, which has led some observers to suggest China is looking to weaken the unit in preparation for the impact of a possible trade war.
The euro rallied after European Union leaders agreed on a migration deal, which soothed concerns about fresh unrest in the troubled bloc.