Phl stocks rise on continued optimism over China

MANILA, Philippines - Asian stock markets including the Philippines rose yesterday as investors kept their sights on a possible improvement in China’s economy.

A key survey of Chinese manufacturing activity rose to a three-month high in October, easing concerns that China might experience an abrupt economic “hard landing” rather than a gradual slowdown. The survey, released Wednesday, showed that industrial production continues to shrink, but not as sharply as in the past.

At the Philippine Stock Exchange (PSE), the main composite index rose 6.47 points to close at 5,405.16

Most sectoral indices closed in positive territory, led by mining and oil that jumped 291.56 points to 20,225.18 and financials that rose 7.43 points to 1,379.01. Property climbed 9.26 points to 2,090.06, while holding firms went up 1.12 points to 4,615.06.

Industrial, however, defied the market’s rally, losing 38.55 points to 8,356.99, while services dipped 1.77 points to 1,753.06.

Advancers overtook decliners 88 to 78, while 47 stocks were unchanged.

Among actively-traded stocks, Metropolitan Bank & Trust Co. rose P1.75 to P93.75, while Ayala Corp. climbed P6 to P439.

“There are positive signs pointing to further gains ahead, with new orders improving and manufacturers finally reporting that they are running down inventories of unsold goods,” analysts at Capital Economics said in a market commentary.

Japan’s Nikkei 225 index rose 100.90 points to 9,055.20. South Korea’s Kospi dipped 0.1 percent at 1,911.94. Australia’s S&P/ASX 200 gained 0.2 percent to 4,512.80. Benchmarks in Singapore, and the Philippines also rose.

Hong Kong’s Hang Seng rose 46.45 points to 21,810.20.

The US Federal Reserve announced no new steps at the end of a two-day meeting Wednesday, but many economists think that the Fed will provide more assistance at its last meeting of the year on Dec. 11-12.