Philippine and global stock prices surged on Tuesday as investors were encouraged by vaccine rollouts and signs that new coronavirus disease 2019 (Covid-19) cases may be abating.
The Philippine Stock Exchange index (PSEi) recovered Tuesday after a two-day slide with the main equities index rising by 1.22 percent, or 84.85 points, to 7,044.06 points. Volume totaled 21.86 billion shares amounting to P18.16 billion.
“Philippine shares closed stronger as future contracts sustained its strong upward momentum,” said Luis Limlingan, Regina Capital Development Corporation head of sales.
He added that investors’ sentiment was also driven by the impact of the stimulus spending “that would further boost the world’s largest economy from a slump caused by the pandemic.”
Meanwhile, US markets were closed Monday for Washington’s Birthday, a national holiday. Shanghai remains closed for the Lunar New Year, until Thursday.
But France’s CAC 40 edged up nearly 0.2 percent to 5,795.86 in early trading, while Germany’s DAX added 0.1 percent to 14,126.81. Britain’s FTSE 100 gained 0.3 percent to 6,774.58. U.S. shares were set to drift higher with Dow futures adding 0.6 percent to 31,600. S&P 500 futures rose 0.5% to 3,950.88.
Japan’s benchmark Nikkei 225 jumped 1.3 percent to finish at 30,467.75, after closing the day before above 30,000 for the first time since August 1990. In Hong Kong, the Hang Seng added 1.9 percent to 30,746.66. South Korea’s Kospi gained 0.5 percent to 3,163.25, while Australia’s S&P/ASX 200 added 0.7 percent to 6,917.30.
Despite data that show regional economies have been hit hard by the pandemic, investors are still sending indexes ever higher. Analysts think Asian shares will continue to rally, cheered by the recent gains on the US and European markets.
Hopes for a recovery are being driven partly by the Covid-19 vaccine rollouts, said Prakash Sakpal, senior economist Asia at ING.
“Gains will still likely be capped as investors remain wary of newer strains of the variant, which may be more resilient to existing vaccines,” he added. SOVEREIGNPH