Share prices rose Friday along with the rest of Asia after a Wall Street rally ahead of a speech by Federal Reserve boss Jerome Powell that is expected to reiterate his plan to ramp up interest rates to fight inflation.
The Philippine Stock Exchange Index added 46.07 points, or 0.7 percent, 6,752.50 on a value turnover of nearly P10.6 billion. Losers, however, edged gainers, 89 to 88, with 47 issues unchanged.
Bank of the Philippine Islands of the Ayala Group, the third-biggest lender in terms of assets, climbed 3 percent to P96.95, while sister unit and major property developer Ayala land Inc. advanced 2.8 percent to P29.30.
Aboitiz Equity Ventures Inc. of the Ayala Group increased 2.9 percent to P59, while Solar Philippines Nueva Ecija Corp. added 2.4 percent to P1.69.
The rest of Asian and European markets rose Friday. Adding to the strong buying sentiment were signs of progress in talks between US and Chinese regulators that could see tech titans including Alibaba and JD.com avoid a delisting in New York.
Global equities have staggered in recent weeks after a near two-month rally from their June lows as a string of Fed officials lined up to reaffirm their commitment to tighten monetary policy, despite some promising economic data.
All eyes are now on Powell’s remarks later Friday at the annual symposium of top bankers and finance chiefs at Jackson Hole, Wyoming.
Most expect him to confirm that more hikes are on the way as officials try to bring inflation down from painful highs not seen in four decades.
Analysts said that while a number of board members have lined up this week, the hawkish tilt has largely been baked into market prices.
The key issue now is how much the bank will tighten over the coming months, with expectations for a half-point lift next month, after two three-quarter moves in June and July.
Wall Street’s three main indexes ended well up Thursday, with the Nasdaq and S&P 500 up more than one percent.
And Asia followed the lead, with Tokyo, Hong Kong and Sydney closing higher. There were also gains in Seoul, Singapore and Taipei.
Shanghai, however, ended lower.
Hong Kong enjoyed a surge in tech shares thanks to news that China-US regulatory talks were progressing.
More than 200 Chinese firms have for months had the threat of a New York delisting hanging over them as they are caught in a wide-ranging row between the world’s two biggest economies.
But reports said Thursday that Beijing had called on top accounting firms to prepare to bring US-listed companies’ audit papers to Hong Kong, to be reviewed by US officials.
US lawmakers set a 2024 deadline for the removal of businesses that do not comply with listing rules and the latest move could provide a big step in avoiding that.
“To see that both sides are communicating, it is a good thing,” said Daisy Li, at EFG Asset Management.
“Still, we will need to see if the US side is actually willing to accept the disclosure. If this can be resolved, it could help lower some (of the) China market’s geopolitical risk premium.”