China crackdown fuels mart jitters
Philippine Stock Exchange index closed at 6,473.03, weaker by 49.55 points or 0.76 percent after moving between 6,370.25 and 6,511.83
Shares fell again as the Chinese regulatory crackdown dampened market sentiment. It comes after the massive selloff in Hang Seng Index.
Investors are still tuned in to the earnings reports and the upcoming Federal Reserve meeting.
Meanwhile, durable goods orders climbed by +0.8 percent last month, underwhelming the consensus forecast of a two percent uptick. It is due to the upward revision in the prior month’s result. May home prices also reported the highest growth since 1987 at 16.6 percent. China’s ongoing regulatory crackdown would likely continue weighing on Asian bourses, led by education, online finance, e-commerce, and property stocks — sectors currently heavily scrutinized.
The Philippine Stock Exchange index closed at 6,473.03, weaker by 49.55 points or 0.76 percent after moving between 6,370.25 and 6,511.83. Volume of trades hit 68,822 shares valued at P4.47 billion.
Beijing measures spook marts
Asian markets mostly fell as fears over China’s regulatory crackdown continued to reverberate around trading floors, while analysts said companies might struggle to maintain their recent run of blockbuster earnings results that have sent valuations soaring.
Hong Kong and Shanghai were in focus after suffering a diabolical previous three days in the wake of Beijing unveiling a series of measures aimed at curbing a range of industries, including tech and private tuition, that have raised fears of further action.
The struggles in Asia were reflected in New York, where the Nasdaq led losses. And while some of the selling was down to profit-taking after all three indexes hit records on consecutive days, analysts said unease about China’s moves played a role.
“The turmoil in tech stocks in China is finally bleeding into US tech stocks,” Chris Murphy, of Susquehanna International Group, said.
Murphy added that he was “concerned investors will lighten up in general” after major tech earnings heading into “a seasonably weak period for equities.”
Murphy’ s comments came as Apple, Google-parent Alphabet and Microsoft all announced better-than-expected results, but their after-hours share prices dropped.
“The key takeaway from this wrath of earnings was that risk appetite will likely struggle going forward given the persistent struggles with supply chains, concerns over growth in China, and uncertainty over how much more monetary and fiscal support this economy will see,” said OANDA’s Edward Moya. CL