The market edged higher after the Japan Credit Rating Agency (JCR) affirmed the country’s A rating due to its economic resilience, relatively low debt levels, and unimpaired fiscal soundness
Regina Capital Development Corp. managing director Luis Limlingan said sentiment was also buoyed following the dip in the benchmarks last week when the August US jobs data disappointed the market.
Investors also brushed off the latest inflation print, which showed an acceleration in August to 4.9 percent.
According to the latest Bloomberg survey, the median consensus forecast was 4.4 percent, which pointed to an uptick in electricity, oil and food prices.
The Philippine Stock Exchange index finished the day at 6,912.71, which was up 35.61 points from the previous day or a 0.52 percent increase from 77,074 shared traded worth P5.124 million.
Asian investors battled to build on recent gains Tuesday as they tentatively assessed the global outlook against the backdrop of rising Delta coronavirus cases and signs of a slowdown in the economic recovery.
Tokyo’s Nikkei 225 briefly broke 30,000 for the first time in five months on growing expectations for a fresh injection of stimulus after Japan’s prime minister said he would step aside, paving the way for a new big-spending successor.
The blockbuster growth that characterized the start of the year has tailed off in recent months as the Delta variant sends new infections spiking around the world, tempering consumer spending and forcing some countries to impose strict containment measures.
However, several markets have continued to press to new records or multi-year highs owing to the ultra-loose monetary policies of central banks around the world, particularly the US Federal Reserve, that have kept borrowing costs down.
While there is a general expectation that that largesse will come to an end soon as economies emerge from the pandemic crisis, officials have indicated they are in no rush to taper just yet as they track the impact of Delta.
And Friday’s massive miss on US jobs creation provided a big boost to markets as it meant the Fed’s planned policy tightening will not likely start until November or December, instead of the September that had been suggested.