Share prices on the Philippine Stock Exchange rallied on Monday as investors’ appetite for risky assets were roused by the latest US jobs data that exceeded expectations and indicated a strengthening US economy.
The data released on Friday showed that 287,000 jobs were created in June or 112,000 more than expected. That robust growth lit, according to an AFP report, a fire under US and European shares, which, the agency said, were also fired up by hopes for fresh central bank stimulus. As a result, all three main indexes on Wall Street surged while European markets also rallied.
The rally then spread to Japanese and other Asian markets as they opened for trading on Monday.
In the Philippines, the benchmark PSEi climbed 1.21 percent or 93.75 points to close at 7,
865.27, while the broader All Shares increased by 0.92 percent or 43.27 points to settle at 4, 757.17.
Value turnover reached P8.13 billion, with advancers clearly upstaging decliners, 131 to 73, while some 43 issues remained unmoved.
All sub-indices ended in positive territory, except for mining and oil firms, which marginally dipped by 0.10 percent. The property sector benefited the most with 2.43 percent increase.
In Japan, the landslide election victory of Prime Minister Shizo Abe’s ruling party proved an addition catalyst. According to AFP, the victory fuelled speculation for a fresh round of stimulus, reportedly worth as much as 20 trillion yen ($120 billion), to kick start the stumbling economy and the market closed 4 percent higher.
Similarly, Seoul gained 1.3 percent, Hong Kong rose 1.5 percent, Shanghai climbed 0.2 percent and Sydney added 2 percent.