Stocks surge on prospects of easing trade war tension

MANILA, Philippines — The stock market skyrocketed yesterday as investors cheered news that the trade war between the US and China may ease after positive comments from President Donald Trump.

The benchmark Philippine Stock Exchange index (PSEi) soared by 186.92 points, or 2.63 percent, to finish at 7,270.26.

Taking the cue from the index, the broader All-Shares index also performed with a bang yesterday, soaring 76.30 points or 1.77 percent.

The sectoral indices also closed in positive zone as well except for the mining and oil gauge, which ended lower by 0.20 percent.

Regina Capital’s Luis Limlingan said Philippine shares skyrocketed after comments from Trump once again sparked hopes that a trade dispute with China could be resolved in the near term.

Trump has hinted that the US may no longer need to slap additional tariffs on China.

“I don’t want to put them in a bad position,” said Trump. “I want to put them in a great position. But it’s called reciprocal. We have to have reciprocal trade. We can’t have trade that’s meant for stupid people.”

President Xi Jinping, meanwhile, will be arriving in Manila for a state visit.

Limlingan said investors are optimistic over Xi’s visit in the country.