Philippine stocks dip on Moody's US credit rating downgrade

Philippine stock investors reacted negatively to Moody's historic downgrade of the United States' credit rating, causing a significant dip in the local stock market.

The Philippine Stock Exchange Index (PSEi) closed down by 1.85 percent, settling at 6,335.33 points, falling below the 6,400 level for the fifth consecutive session.

Similarly, the broader All Shares Index saw a decrease of 1.2 percent, ending at 3,720.57.

Analysts suggest the market's reaction stems from concerns that the downgrade might lead to increased US Treasury yields, potentially making equities less appealing.

The downgrade, issued over the weekend, was the first by Moody's and cited the ballooning debt of the US.

While some sectors saw gains, the PSEi spent most of Tuesday in the red territory after initial optimism waned, with services, financials, and holding firms taking the biggest hits.