MANILA – Philippine shares recovered from a 2-day slide on Tuesday, as Asian markets held within striking distance of recent decade highs.
The Philippine Stock Exchange Index was up 0.21 percent to 8,365.64 in early trading. The peso opened at P51.46 to the dollar from P51.51 on Monday.
The main index has room to rally further even after breaking the 8,500-point barrier last week, with stocks considered cheap compared to emerging market peers, said First Metro Securities head of equity research Mark Angeles.
"The way it is right now, the market is on an uptrend," Angeles told ANC's Market Edge with Cathy Yang. "Any correction from this point on should be shallow."
Overnight, Wall Street fell from record levels, while currencies kept to narrow ranges ahead of key economic events.
Investors are closely watching China and the 19th Communist Party Congress, which winds up on Tuesday and at which President Xi Jinping is expected to release the composition of the Standing Committee - the apex of power in the country.
MSCI's broadest index of Asia-Pacific shares outside Japan was 0.1 percent firmer at 549.71 points, not far from a 10-year high of 554.63 set last week.
Australian shares also edged higher and back toward a 5-1/2 month peak touched on Monday, while Japan's Nikkei fell 0.2 percent from a 21-year high.
"Despite a lack of any real movement in markets, we know there are landmines and event risk to work through and this creates opportunity for short-term traders," said Chris Weston, chief strategist at IG Markets.
"Whether the gains can continue this week is obviously yet to be seen. I remain a bull, but of the view that these markets are tired, fatigued and need new information to fuel the beast."
In the United States, the Dow Jones Industrial Average fell 0.23 percent, the S&P 500 lost 0.40 percent and the Nasdaq Composite slipped 0.64 percent.
Corporate results will dominate near-term sentiment with earnings from General Motor, McDonald's, and Lockheed Martin due later in the day.
European STOXX 600 shares rose 0.16 percent, although Madrid's bourse IBEX shed 0.6 percent as Spain's crisis entered another week.
Madrid took the unprecedented step of firing the government of Catalonia on Saturday in a last resort to thwart its push for independence. Catalan leaders called for civil disobedience in response.
In Germany, the far-right Alternative (AfD) party is set to clash with other parties over its nomination for a senior parliamentary post when the Bundestag meets on Tuesday.
The political tensions have weighed on the euro which hovered near two-week lows at $1.1752. The market is on edge ahead of a European Central Bank meeting on Thursday where it is expected to announce some form of policy tapering.
Investors were also biting their nails as suspense builds over who might be the next chair of Federal Reserve after Janet Yellen's term expires in February.
US President Donald Trump has indicated an announcement is expected "very shortly."
The market is betting on Federal Reserve Governor Jerome Powell as the likely choice while Trump is also weighing on Stanford University economist John Taylor and current Federal Reserve Chair Janet Yellen.
The dollar index inched lower to 93.8 but stayed in sight of a recent two-month peak.
The New Zealand dollar rose 0.2 percent from near 5-month lows with investors focused on any policy tidbits out of the country's new Labour government.
In commodities, spot gold was mostly unchanged at $1282.26 an ounce.
Oil prices were little changed as supply disruptions in Iraq dented exports by OPEC's second-largest producer and US drilling rates showed a slowdown.
Brent crude added 6 cents to $57.43, while US crude rose 3 cents to $51.93 a barrel. -- with reports from Reuters