The stock market rose Tuesday on mild bargain hunting, shrugging off the latest inflation report that showed prices surging to a 42-month high of 5.4 percent in May from 4.9 percent a month ago.
The Philippine Stock Exchange Index added 37.13 points, or 0.6 percent, to 6,754.01 on a value turnover of nearly P5 billion. Gainers edged losers, 96 to 90, with 42 issues unchanged.
Major property developer Ayala Land Inc. of the Ayala Group advanced 3.3 percent to P30.95, while parent Ayala Corp. climbed 2.6 percent to P678.50.
Fiber broadband provider Converge ICT Solutions Inc. rose 1.5 percent to P24.20, but newly-listed solar power generator Raslag Corp. slumped 7.8 percent to P1.89.
The rest of Asian stock markets struggled Tuesday on long-running worries over surging inflation and rising interest rates, which overshadowed hopes that China would ease off its regulatory drive against the country’s beleaguered tech giants.
A spike in US Treasury yields took the wind out of the sales for Wall Street, with focus now on the release of inflation data from the United States and China at the end of the week.
Analysts are tipping the Federal Reserve to lift borrowing costs by half a point at its next three meetings as officials try to get a grip on runaway prices.
But that is causing discomfort on trading floors as investors fret over the impact on economic growth and firms’ bottom lines.
“Inflation concerns are not going anywhere fast,” Fiona Cincotta, at City Index, said. “Rising crude oil prices and a strong labor report have lifted bets that the Fed may need to act aggressively to rein in inflation.”
And SPI Asset Management’s Stephen Innes added: “Investors are hyper-focused on inflation, economic growth, and future Fed policy.
“Most assume the worst and think a financial tsunami will hit the US and global markets thanks to the quorum of US-based bank CEOs that have given the gloomy growth narrative their imprimatur. Anything less than that outcome is going to surprise a lot of folks.” With AFP
Equity markets were mixed in Asia and Europe. Tokyo rose, helped by a softening of the yen to a two-year low owing to expectations the Bank of Japan will not tighten monetary policy just as US rates climb.
Jakarta also edged up but there were losses in Seoul, Singapore, Mumbai, Bangkok, Wellington and Taipei.
Sydney dropped more than one percent after the Australian central bank announced a bigger-than-forecast half-point rate hike to quell inflation.
Hong Kong fell and Shanghai ticked slightly higher, even as heavyweights Alibaba and JD.com led a rally among tech firms following a report that China was close to ending a painful crackdown on ride-hailing app Didi Global and restoring its main apps this week. Didi’s US-listed notes soared more than 20 percent.
The Wall Street Journal added that probes into two other firms—Full Truck Alliance and recruitment platform Kanzhun—fanning optimism for the sector’s outlook after a long period of hefty selling pressure.
“This was seen as a signal that the regulatory crackdown on Chinese tech firms was starting to end… as China focuses on stabilizing the economy following COVID restrictions,” said National Australia Bank’s Tapas Strickland. With AFP