Stocks rose Monday, ahead of the release of second-quarter gross domestic product data later in the week and as more companies reported strong earnings in the first half.
The Philippine Stock Exchange index, the 30-company benchmark, rose 4 points to close at 7,960.17, to end a three-day slump. The bellwether was up 14.5 percent since the start of the year.
The heavier index, representing all shares, gained 22 points, or 0.5 percent, to settle at 4,745.65, on a value turnover of P10.4 billion. Losers outnumbered gainers, 108 to 87, while 49 issues were unchanged.
Twelve of the 20 most active stocks ended in the green, led by LT Group Inc., the holding company of tycoon Lucio Tan which climbed 4.9 percent to P16.80 and electronics firm Cirtek Holdings Philippines Corp. which advanced 3.3 percent to P23.60.
Security Bank Corp. gained 3.1 percent to P214.40. Port operator International Container Terminal Services Inc. rose 2.9 percent to P77.05.
Meanwhile, Asian shares fell from a one-year high as disappointing economic data in Japan and the US curbed demand for riskier assets, even as oil extended its rebound. The yen held gains as gold and government debt advanced.
Stocks in Tokyo drove the retreat, with markets in South Korea and India shut Monday for holidays. The yen held near its strongest level in more than a week versus the dollar after data showed Japan’s economy grew less than was forecast in the second quarter, spurring speculation over the country’s already unprecedented stimulus program.
Ten-year debt in Australia and New Zealand climbed as gold snapped a two-day drop. U.S. crude rose for a third day, while nickel tried to rebound from its worst rout since early July.
Investors are oscillating when it comes to the global outlook, with evidence of uneven growth in the world’s biggest economies both unnerving traders and fueling optimism that central banks will come to the rescue by way of stimulus.
Data showing stagnant retail sales and an unexpected drop in wholesale prices helped keep a lid on U.S. rate hike bets Friday, with policy maker James Bullard also fueling the fire. The Fed Bank of St. Louis President said he had become more dovish over the past six months and that he expects a single U.S. rate increase over his policy horizon.
“The US economy may have lost a bit of momentum on its way up,” said Shoji Hirakawa, chief global strategist at Tokai Tokyo Research Center. “Still, weak numbers mean concern over tightening recedes,” he said.
Japan posted annualized expansion for the second quarter of 0.2 percent, below the 0.7 percent projected by economists and down from 2 percent growth in the first six months of the year.
Officials in Asia’s second-largest economy are struggling to ignite price growth, with the central bank running negative interest rates and an unprecedented asset-purchase program, and the government also bolstering fiscal stimulus.
Data on Japanese industrial output is also due Monday, along with an update on Thai GDP and Singaporean retail sales. Indonesia reports on trade and the Philippines issues data on remittances.
“The road ahead may be bumpy but Asian equities ex-Japan are relatively undervalued, under owned and under appreciated,” Vasu Menon, vice president for wealth management research at Oversea-Chinese Banking Corp. in Singapore, said by phone. “It could do better than other regions over the next few years once we see greater stability in China and greater clarity with Fed policy.”
Futures on the S&P 500 Index added 0.1 percent to 2,182, after the underlying stock measure gave up that amount on Friday, falling from a record high. Contracts on Hong Kong’s Hang Seng Index fell 0.1 percent in most recent trade, while those on the Hang Seng China Enterprises Index were little changed. FTSE China A50 Index futures declined 0.7 percent early Monday.
The yen was little changed at 101.41 per dollar after gaining 0.7 percent on Friday, bringing its advance in the week to 0.5 percent. Japan’s currency has strengthened 19 percent this year, the biggest gain among the majors behind a 24 percent jump in the Brazilian real, as stimulus efforts fail to make their mark. With Bloomberg
