PHILIPPINE SHARES corrected on Wednesday, tracking Asian markets, even as concerns over rate hikes and the global economy’s prospect continued to affect sentiment.

The benchmark Philippine Stock Exchange index (PSEi) went up by 20.31 points or 0.30% to close at 6,597.76 on Wednesday, while the broader all shares index improved by 3.64 points or 0.10% to 3,554.04.

“The local stock market corrected higher today after declining for two straight days, nevertheless defying the latest declines in the US stock markets… Markets also gained after US Treasury yields, with the benchmark 10-year tenor near one-month low at 2.7%,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message on Wednesday.

“Philippine shares rebounded, as foreign investors stayed away from dropping tech names for bonds on fears of global economic slowdown. The 10-year Treasury yield slipped as low as about 2.7% on Tuesday after topping 3% earlier this year,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

US Treasury yields fell to one-month low on Tuesday after housing data pointed to a cooling economy as the Federal Reserve presses on with aggressively hiking interest rates to tackle soaring inflation, Reuters reported.

Longer-dated yields have dropped from 3-1/2-year high as sharp declines in stocks increased demand for US government debt, and as investors worry that the Fed’s continued rate hikes will tip the economy into a recession.

Two-year note yield fell to 2.464%, the lowest since April 19, before rising back to 2.483%. Benchmark 10-year note yield dropped to 2.718%, the lowest since April 27, before rebounding to 2.76%.

Asia stocks rose on Wednesday even as central banks piled into aggressive rate hikes to battle soaring inflation and left investors worried about slower global growth.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.72%, with Australian shares up 0.72%, Seoul adding 0.84% and Taiwan advancing 1.07%.

Back home, the majority of the sectoral indices ended in the red except for holding firms, which climbed by 71.24 points or 1.18% to 6,089.75, and financials, which rose by 8.74 points or 0.55% to 1,574.95.

Meanwhile, mining and oil fell by 60.81 points or 0.43% to 11,730.05; property declined by 11.94 points or 0.39% to 3,005.14; services gave up by 7.36 points or 0.39% to 1,865.91; and industrials dropped by 5.44 points or 0.05% to 9,242.70.

Decliners beat advancers, 107 versus 76, while 57 names ended unchanged.

Value turnover decreased to P5.99 billion on Wednesday with 1.03 billion shares changing hands from P20.20 billion with 1.54 million issues seen on Tuesday.

Net foreign selling retreated to P382.62 million from P9.58 billion seen on the previous trading day. — Luisa Maria Jacinta C. Jocson with Reuters