Markets rise as China pledges fresh property support

MANILA, Philippines — Stock markets rose yesterday, with Hong Kong and Shanghai lifted by China moves to support its struggling property sector.

The gains extended the uptrend in New York and Europe as traders look ahead to the release of key US inflation data this week, which could provide a fresh indication of the Federal Reserve’s interest rate plans.

Likewise, Philippine stocks rose by 18.92 points or 0.30 percent to settle at 6,398.64 as investors searched for some bargains. Likewise, the All Shares index gained 10.87 points or 0.32 points to close at 3,429.87.

Unicapital Securities said the Philippine market has factored in the likelihood that the US Federal Reserve would stay hawkish given the second half guidance of a potential two more rate hikes.

Hong Kong was again one of the best performers yesterday, a day after a tech-fuelled advance that came after Beijing hit fintech firms Ant Group and Tenpay with big fines and signalled a sector crackdown was almost over.

Sydney, Mumbai, Seoul, Singapore, Taipei, Bangkok and Jakarta were all up yesterday. Tokyo eked out marginal gains. London, Paris and Frankfurt opened higher.

The release of US consumer and producer inflation data this week is now in focus as investors gird themselves for the Fed to resume its rate hiking drive after last month’s pause.

While data has pointed to a slowdown in US jobs growth and a tempering of economic activity, most bets are for borrowing costs to go up this month and possibly at least once more before the end of the year.

Several central bank officials have lined up to warn more tightening was needed to get prices under control and inflation back to the Fed’s two percent goal.

The data is followed by earnings from some of Wall Street’s big beasts including JPMorgan Chase, Delta Air Lines and PepsiCo.

But observers said the reporting season could be a tough one for markets as firms are expected to provide dour forecasts in light of the higher rates environment and the near-term outlook for the global economy.