Philippine stocks climb on lower inflation data

Philippine stocks recovered on Tuesday, with the PSEi climbing 1.39% to 6,083.83, as September consumer price index (CPI) data showed inflation at 1.7%, lower than the expected 1.9%.

This favorable inflation data boosted market sentiment and strengthened expectations of possible monetary easing by the Bangko Sentral ng Pilipinas (BSP).

The PSEi closed at 6,098.74 on Wednesday, nearing 6,100 as bargain hunters emerged, supported by foreign buying and positive economic data.

Investors continued shopping for shares ahead of the BSP's Monetary Board policy meeting on Thursday, with analysts divided on whether the central bank will pause or cut interest rates.

Despite the gains, trading remained thin with turnover below the year-to-date average, and foreign investors posted net outflows.

Political tensions over alleged anomalies in flood control projects continued to dampen investor confidence, particularly in infrastructure-linked stocks.

The peso closed at P58.07 against the US dollar.