Philippine shares extended gains for a second straight day as better-than-expected economic growth brought cheer to the market, while broader regional sentiment was buoyed by easing US Treasury yields and the dollar. The Philippine economy grew 7.1 percent year-on-year in the third quarter, its fastest pace in more than three years, supported mainly by household demand.
US Treasury yields eased in Asian trade, dragging the dollar off its highest level since April 2003 set overnight. "The dollar has been easing a little, that could be the reason for the wider market. I think it's not so much as foreign buying but an easing of foreign selling (of equities)," said Victor Felix, equity analyst at Manila-based AB Capital Securities.
The Philippine index closed 1.2 percent higher, after having risen as much as 2.2 percent during the day, led by industrials and financials. Ayala Corp gained 3.8 percent, while Bank of the Philippine Island and Metropolitan Bank and Trust Co rose over one percent each. A Reuters poll of economists showed that the Federal Reserve is on course to raise US interest rates next month after the victory of Donald Trump in the presidential election.
"The probability of a rate hike next month is almost certain, so I think investors are moving to the emerging markets just for the short term, before the December (Fed) meeting," added Felix. Financials were up in four of the six regional markets, ahead of the Fed meeting. Gains in Singapore were led by the financial sector, where DBS Holdings gained 1.5 percent and United Overseas Bank gained 1.4 percent.
Investors also shrugged off the worse-than-expected fall in October exports in Singapore, as non-oil domestic exports slid 12 percent from a year earlier. Thai stocks ended marginally lower in their second straight session of losses with consumer stocks leading the decline.
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