By James A. Loyola

The local stock market made a strong bounce after its spiral since the start of the week as overseas developments sparked off bargain hunting and some risk-taking.

The main index surged 248.27 points or 3.48 percent to end the week at 7,383.00 as share prices rose across the board led by the Financials and Property sectors.

Philippine shares rose after a report that China would cut import tariffs for most of its trading partners, sidelining wider trade war worries.

China plans to reduce the average tariff rate on imports from most of its trading partners as early as October after cutting import tariffs on almost 1,500 consumer products in July as part of efforts to open up its economy.

Markets were unfazed by the most recent round US-China tariffs, which were set at lower rates than previously expected, raising hopes that hostilities between the world’s two largest economies may be easing.

“China is considering tariff rate cuts on imports on a majority of its trading partners. So, in effect, this would trim the impact of a possible blowout of the US-China trade war on global trade. So, the positive outlook benefited emerging markets,” said Fio De Jesus, an analyst at Manila-based RCBC Securities.

Regina Capital Development Corporation Managing Director Luis Limlingan added that, “the local made the leap back into bargain hunting supported as risk-on sentiment returned with US indices closing at record highs and emerging market funding levels normalizing.”

US stocks closed higher Thursday, with both the Dow Jones Industrial Average and the S&P 500 setting records. Strong economic data helped to alleviate concerns over escalating U.S.-China trade tensions.

Blue chips helped to fuel the rally, with all but two of the Dow’s 30 components finishing in positive territory. Wall street catapulted into record territory after a sort of olive branch move by China in reducing import tax eased trade jitters.