Philippine bonds, stocks, and the peso fell as Europe’s worsening debt crisis and data showing slower U.S. jobs growth hurt demand for emerging-market assets.
The MSCI Asia-Pacific Index of regional shares slumped for a fourth day as European leaders failed to agree a course of action to repair the finances of regional governments and banks. German Chancellor Angela Merkel said on June 2 that the situation for Spanish lenders is “fragile.” American employers added 69,000 workers last month, the fewest in a year, according to figures released on June 1.
“The negative movement of Philippine assets, whether in bonds, stocks or the currency, is because of what’s happening globally,” said Rafael Algarra, executive vice president of financial markets at Security Bank Corp. in Manila. “Problems from Europe to the U.S. have increased risk aversion.”
The peso slid 0.2 percent to close at 43.482 per dollar in Manila, prices from Tullett Prebon Plc show. One-month implied volatility, a measure of exchange-rate swings used to price options, fell 25 basis points, or 0.25 percentage point, to 7.5 percent.
The yield on 8 percent government bonds due July 2031 rose four basis points to 6.1 percent, the highest level since April, according to Tradition Financial Services. The benchmark Philippine Stock Exchange Index declined 3.4 percent, its biggest drop since September.