The stock market surged Tuesday as shares played catch-up with the rest of Asia after Monday’s holiday.
The Philippine Stock Exchange rose 78.14 points, or 1 percent, to 7,844.61 on a value turnover of P7.6 billion. Gainers beat losers, 112 to 94, with 38 issues unchanged.
Globe Telecom Inc., the second-biggest telecommunications firm, advanced 3.5 percent to P2,068, while Manila Electric Co., the largest retailer of electricity, climbed 3.8 percent to P380.
International Container Terminal Services Inc., the biggest port operator, gained 2.9 percent to P95.15, while SM Investments Corp. of retail tycoon Henry Sy Sr. added 2.3 percent to P970.
The rest of Asian investors extended a rally on Tuesday, tracking another Wall Street record as they cheered a fresh trade deal between the United States and Mexico—ending one row picked by Donald Trump that had rattled global markets.
The agreement raises hopes the North American Free Trade Agreement, rejected by the White House soon after Trump’s election, can be salvaged after Canada rejoins talks on Tuesday.
The pact was described by the US president as “a big day for trade” and it sent the S&P 500 and Nasdaq to fresh all-time highs, while the Dow broke 26,000 for the first time since January.
Equities, which enjoyed a healthy run after Federal Reserve boss Jerome Powell indicated Friday the bank would not aggressively raise interest rates, mostly rose in Asia but gains from an early rally were pared.
Tokyo ended 0.1 percent higher, with Toyota boosted by news it will invest about $500 million into Uber as part of a deal to work on mass-producing self-driving vehicles.
Hong Kong was up 0.2 percent in the afternoon after jumping more than two percent Monday, while Shanghai finished 0.1 percent off.
Sydney climbed 0.6 percent and Singapore was 0.8 percent higher, with Seoul adding 0.2 percent and Taipei 0.8 percent stronger.
Wellington and Jakarta were also in positive territory.
Mizuho Securities said in a note to clients that investors are monitoring “the US-Canada negotiations… and the impact on US-China trade talks.”
Monday’s agreement comes after officials from Washington and Beijing held talks last week aimed at easing trade tensions that have seen them hit each other with tariffs on tens of billions of dollars worth of goods.
While the meeting did not achieve any breakthrough, the fact it took place was seen as a good sign.
Stephen Innes, head of Asia-Pacific trading at OANDA, said dealers were “in a festive mood” as the deal removed “one major hurdle that has been haunting North American investors for months.”
He added: “Markets are reveling in any trade positives… After all, a deal is a deal.”
However, Trump appeared to temper expectations for a fresh round of talks with China, saying after announcing the new pact that “it’s just not the right time to talk right now” before adding “eventually, I’m sure that we’ll be able to work out a deal”. With AFP