Stocks, peso rise; ALI leads gainers

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stocks rose and the peso slightly gained Friday in line with the movement of other markets in the region despite expectations for more big Federal Reserve rate hikes. READ:

The PSE index, the 30-company benchmark of the Philippine Stock Exchange, picked up 9 points, or 0.2 percent, to close at 5,904.75 as four of the six subsectors advanced.

The hotly awaited US inflation report showed prices rose last month at a faster clip than expected despite a series of interest rate increases this year, which have fanned fears of a global recession. Some said the initial selling may have been a knee-jerk reaction before traders accepted the data was not as bad as other recent reports, while technical factors were also flagged.

“Monetary policy is quickly getting restrictive and that will undoubtedly send inflation lower. It looks like rates will peak slightly above five percent and for some that is good enough of a reason to get back into stocks.”Tokyo piled on more than three percent, while Hong Kong, Seoul, Taipei, and Mumbai added more than two percent. There were also big gains in Sydney, Singapore, and Wellington.

The pound’s stronger position came despite Prime Minister Liz Truss’s insistence that there would be no more U-turns, after she was previously forced to scrap a plan to cut the higher rate of income tax.

 

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