Stocks rose Tuesday, after a four-day break, as global markets reopened with investors focusing on stronger corporate earnings.
The Philippine Stock Exchange index, the 30-company benchmark, gained 42 points, or 0.6 percent, to close at 7,703.10, as five of the six major sectors advanced. The bellwether was up 12.6 percent since the start of the year.
The heavier index, representing all shares, also climbed 25 points, or 0.6 percent, to settle at 4,604.57, on a value turnover of P7.3 billion. Advancers outnumbered losers, 119 to 84, while 39 issues were unchanged.
Thirteen of the 20 most active stocks ended in the green, led by MRC Allied Inc. which surged 8.3 percent to P0.455 and Puregold Price Club Inc. which jumped 3.7 percent to P43.25. SM Prime Holdings Inc. gained 3 percent to P30.70.
Meanwhile, most Asian markets traded higher Tuesday as investors focused on earnings that have helped power global stocks to a record, with tech shares outperforming.
Equities have also rallied since Emmanuel Macron emerged as the front-runner over Marine Le Pen in the French presidential race. A tentative deal by the US Congress to avert a government shutdown eliminated another concern this week, while worries about North Korea have lessened. US President Donald Trump said that if the circumstances were right, he would meet with leader Kim Jong Un.
Eyes are now on a Federal Reserve meeting and the release of US jobs data later in the week.
Another record close on Wall Street’s Nasdaq index provided some early buying impetus. However, there was some disappointment in figures last week showing that growth in the US, British and French economies all came in below expectations.
Tokyo ended 0.7 percent higher, with a weaker yen boosting exporters. The greenback is pushing back above 112 yen, having fallen last month on worries about Donald Trump’s ability to push through his pro-growth agenda.
Hong Kong was 0.1 percent higher in the afternoon and Seoul added 0.7 percent by the close, while Wellington, Singapore, Taipei and Manila all posted healthy gains.
However, Shanghai slipped 0.4 percent after official data at the weekend showed the pace of growth in China’s factory activity slowed last month. A separate private reading on Tuesday revealed activity at its slowest pace in seven months.
Sydney was 0.1 percent off.
Traders were given a positive lead from Wall Street, where the Nasdaq ended at another record high, while Trump looked to ease tensions with North Korea by saying he would be “honored” to meet the country’s leader Kim Jong-Un under the right circumstances.
Attention turns now to the Fed’s latest policy meeting Wednesday. While the central bank is expected to hold off another interest rate rise, it statement will be pored over for clues about plans for the future.
The gathering will be followed by Friday’s release of job creation figures, which will give a better snapshot of the state of the world’s top economy.
Asian banking shares were mixed after Trump said in an interview that he was reviewing a possible breakup of large US banks.
He told Bloomberg News he was considering a “21st century” version of the 1933 Glass-Steagall law that separated consumer lending and investment banking and was repealed in 1999 by President Bill Clinton.
“I’m looking at that right now,” Trump said. “There’s some people that want to go back to the old system, right? So we’re going to look at that.” With AFP, Bloomberg