Renewed hopes to resolve the ongoing trade spat between the United States and China brought the local bourse to its three-day rally on Friday.
The benchmark Philippine Stock Exchange index (PSEi) rose by 1.10 percent or 86.85 points to close at 7,979.66, while the wider All Shares increased by 0.92 percent or 43.71 percent to finish at 4,809.48.
“Investors bought up during the window dressing period after China expressed hopes of resolving the trade dispute with the US with a ‘calm’ attitude,” Regina Capital Development Corp. head of sales Luis Limlingan said.
With huge levies on goods worth hundreds of billions of dollars due to kick in over the weekend, the long-running trade war between the world’s top two economies stepped up a gear earlier in the week, and observers fretted the row could drag on.
But Beijing on Thursday appeared to want to dial down the tensions, saying it would hold off on responding in kind, as it has previously warned it would do.
Then US President Donald Trump said talks between the two were planned for later that day, though there was no indication any had taken place by early Asian trade.
The news came as a big relief for markets, which have been hit by volatility over the standoff after both sides last week unveiled fresh tariffs, with Trump slamming Beijing but days later saying they had held phone talks and negotiations would resume soon.
For his part, Papa Securities sales associate Gabriel Jose Perez said PSEi mimicked the US market movement last night.
The Dow Jones, S&P 500 and Nasdaq gained 1.25 percent, 1.27 percent and 1.48, percent, respectively.
“Whether the index breakout of the 8,000 mark should be reliant on US market movement in the coming days, and if foreigners continue their inflow like today,” he added.
Most Asian markets were up, with Seoul leading at 1.78 percent. This was followed by Tokyo, Thailand, Singapore and Jakarta at 1.19 percent, 0.91 percent, 0.60 percent and 0.51 percent, respectively.
Meanwhile, Shanghai dropped by 0.16 percent and Hong Kong dipped 0.09 percent.
In Manila, all sectors were up except for mining oil which dipped by 0.19 percent.
Over 1.21 billion shares amounting to P9.74 billion were traded.
Advancers led decliners, 126-72, while the remaining 35 issues were unchanged.
BY TYRONE C. PIAD WITH A REPORT FROM AFP