Stocks climb as US production data bolster hopes of Fed monetary easing

THE Philippine stock market rose Wednesday following the strong showing by US and Asian markets.

The benchmark Philippine Stock Exchange index surged 65.95 points, or 1.01, percent to close at 6,572.75, while the broader all-shares index climbed 16.56 points, or 0.48 percent, to reach 3,463.46.

First Metro Securities said the PSEi went up after US manufacturing data came lower than expected, which kept alive expectations of US Federal Reserve easing this year.

“On the local front, investors digested the country’s budget deficit was P195.9 billion in March,” First Metro said.

Total value turnover was thin at P1.54 billion.

Meanwhile, other Asian equities extended the week’s gains Wednesday following a strong rally on Wall

Street and another record in London, as traders cheered more upbeat earnings reports and data indicating a slowdown in US economic activity.

Analysts also said a recent pullback in markets provided an opportunity to step back in, while easing Middle East tensions were also providing much-needed support.

All three main indexes in New York enjoyed a bump Tuesday, with the Nasdaq and S&P 500 each piling on more than one percent.

General Electric, Spotify, and diaper and paper product brand Kimberly-Clark were among the companies posting strong gains after releasing quarterly reports.

Microsoft and Alphabet are among the other top firms set to announce their results this week.