The stock market edged higher Monday, joining the rest of Asia after Donald Trump and Xi Jinping agreed to restart trade talks, reviving hopes of an end to their tariff war.
The Philippine Stock Exchange Index rose 44 points, or 0.6 percent, to 8,043.71 on a value turnover of P5.3 billion. Losers edged gainers, 99 to 98, with 57 issues unchanged.
Major property developer Ayala Land Inc. gained 1.8 percent to P51.70, while SM Prime Holdings Inc., the biggest integrated property firm, climbed 2.4 percent to P38.
Century Properties Group Inc. of Ambassador Jose Antonio advanced 3.3 percent to P0.63, while Robinsons Retail Holdings Inc. of industrialist John Gokongwei added 1.5 percent to P75.10.
The rest of Asian markets surged Monday, while oil prices also rallied on news that Saudi Arabia and Russia will extend their output caps.
Shanghai jumped more than two percent while the Chinese yuan climbed to its strongest level in almost two months.
Soft factory activity data indicated continued weakness in the world’s number two economy, though analysts said the readings could press the central People’s Bank of China to unveil fresh stimulus measures.
Tokyo ended 2.1 percent higher, Singapore rallied 1.4 percent and Taipei was up 1.5 percent, with Sydney, Seoul, Mumbai, and Jakarta also higher. Hong Kong was closed for a public holiday.
Seoul was marginally lower, with market heavyweight Samsung Electronics taking a hit from news Japan had imposed restrictions on exports used by South Korea’s chip and smartphone companies in a long-simmering row over the use of forced labor during World War Two.
Trump’s historic visit to North Korea, where he met leader Kim Jong Un, soothed geopolitical concerns and added to the upbeat mood on trading floors.
After a highly anticipated meeting on the sidelines of the G20 summit Saturday, the US president said negotiations to resolve the standoff between the world’s two biggest economies were “back on track” and he would hold off imposing threatened new levies on Chinese goods.
Trump also signaled a softer position on Chinese telecom giant Huawei, a major bone of contention in the row, by saying US companies could sell equipment “where there’s no great national security problem,” White House economic adviser Larry Kudlow said Sunday. China pledged to buy more US agricultural machinery.
While there had been a quiet sense of optimism the talks would end with an agreement to return to the negotiating table, the apparent concession on Huawei took some by surprise and provided some extra buying support.
The news was much-needed after Trump sparked volatility in early May with his shock decision to hit China with new tariffs and halt talks that had seemed to be nearing a positive end.
“After spending the better part of two months in trade war purgatory and with G20 done and dusted, risk markets have responded to Saturday’s events,” said Stephen Innes at Vanguard Markets. With AFP
