Stocks advanced for a third day, as most Asian markets tracked a positive lead from Wall Street despite the geopolitical risks caused by North Korea’s firing of multiple ballistic missiles.
The Philippine Stock Exchange index, the 30-company benchmark, rose 66 points, or 0.9 percent, to close at 7,313.87 Monday. This pushed up total gains this year to 6.9 percent.
The heavier index, representing all shares, gained 29 points, or 0.7 percent, to settle at 4,415.13, on a value turnover of P7.6 billion. Advancers outnumbered losers, 107 to 75, while 46 issues were unchanged.
Thirteen of the 20 most active stocks ended in the green, led by SM Investments Corp. which climbed 2.1 percent to P670 and SM Prime Holdings Inc. which rose 1.7 percent to P29.50. Cemex Holdings Philippines Inc. added 1.7 percent to finish at P8.42.
Meanwhile, escalating geopolitical tensions sparked a rise in the yen, while most Asian equities advanced as investors assessed statements from China’s National People’s Congress and Federal Reserve Chair Janet Yellen.
Hong Kong shares ended with gains on Monday following last week’s losses, as investors tracked a positive lead from their counterparts in New York.
The Hang Seng Index added 0.18 percent, or 43.56 points, to close at 23,596.28.
The benchmark Shanghai Composite Index rose 0.48 percent, or 15.56 points, to 3,233.87. The Shenzhen Composite Index, which tracks stocks on China’s second exchange, jumped 1.18 percent, or 23.63 points, to 2,025.54.
Tokyo shares finished lower as the yen jumped in response to North Korea’s firing of four ballistic missiles, three of which landed in Japanese-controlled waters.Japan moved to the highest possible alert.
The latest provocation from Kim Jong Un’s regime comes as South Korea and the US undertake annual military drills that Pyongyang has called a prelude to an invasion. Tensions have been rising over North Korea, which also conducted a missile test during Abe’s state visit to the US last month and is suspected of being behind the assassination of its leader’s half brother in Malaysia.
Japanese Prime Minister Shinzo Abe said the missiles were launched “almost simultaneously” and warned the threat from Pyongyang had “entered a new stage”.
The yen is seen internationally as a safe-haven currency and investors tend to buy it in times of turmoil or uncertainty, but a pickup in the currency hits Japanese exporters’ profitability.
In Asian forex markets, the dollar slipped to 113.87 yen from 114.05 yen in New York on Friday.
“Investors seem to be reacting to the North Korean missile launch,” said Hiroaki Hiwada, a strategist at Toyo Securities.
“The yen’s strengthening and investors are staying away from trades as geopolitical risk increases. I do think this is a temporary situation as we’ve seen in the past, but with this many missiles being launched there’s heightened tension,” he told Bloomberg News.
The benchmark Nikkei 225 ended the day 0.46 percent, or 90.03 points, lower at 19,379.14. The broader Topix index of all first-section issues lost 0.20 percent, or 3.15 points, to close at 1,554.90.
Toyota slipped 0.17 percent to 6,444 yen while Sony lost 1.16 percent to close at 3,560 yen.
Market heavyweight Fast Retailing, Uniqlo’s operator, closed down 2.76 percent at 36,240 yen.
Yamato Holdings dropped 4.01 percent to 2,441 yen on reports that the major delivery firm would retroactively compensate its parcel carriers for unpaid overtime totaling tens of billions of yen. With Bloomberg, AFP