Shares trade higher as Fed stance lifts Asian markets

ABS-CBN News

Posted at Mar 21 2017 09:56 AM

MANILA – Share prices traded higher on Tuesday, as Asian markets clung to their highest levels in 15 months on the prospects of a less-hawkish Federal Reserve policy trajectory.

The Philippine Stock Exchange Index was up 0.49 percent to 7,352.67 in early trading after a flat open. The peso opened at P50.10 from P50.09 on Monday.

With continued foreign selling and the lack of fresh leads, investors might look to little traded stocks for bargains, AB Capital Securities analyst Migs Lopez told ANC’s “Market Edge with Cathy Yang.”

“We might see that from the local perspective, we are going to buy on the cheap but at the same time, we are going to look at those with earnings potential,” he said.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.1 percent, staying near a 15-month high it touched on Monday, with South Korean shares hitting two-year highs.

Japan's Nikkei dropped 0.8 percent, weighed by financial stocks, which were hurt by lower US yields and exporter stocks, which fell on the yen's gains against the dollar.

While Asian shares have been supported by signs of strong global economic growth, concerns about protectionism cast a shadow after financial leaders of the world's biggest economies dropped a pledge to keep global trade free and open, acquiescing to an increasingly protectionist United States

Wall Street shares drifted lower on Monday as investors worried that President Donald Trump's plan to cut taxes and boost the economy could take longer than previously expected. -- with reports from Reuters