Overseas news
Japanese investors continued to purchase foreign stocks, with their global equity investments reaching JPY250.8 billion (USD1.72 billion) during the week ended May 10, said Japan’s Ministry of Finance.
Last week’s buying activity marked the 8th straight week that Japanese investors increased their foreign stock holdings, likely driven by optimism over US trade talks.
Meanwhile, Canadian housing starts surged 30% in April to a seasonally adjusted annualized rate of 278,606 units.
The latest data, which came from the Canadian Mortgage and Housing Corporation (CMHC), exceeded economists’ forecast of 227,500 units and is higher than the 214,205 units in March.
“Housing starts” refers to the beginning of construction for residential construction projects. This figure is seen an indicator of how an economy is doing, as the number tends to dip when conditions aren’t good, and the opposite when things are better.
Local developments
Remittances from overseas Filipino workers (OFWs) rose 2.6% year-on-year (YoY) in March to reach $2.81 billion, which was the slowest growth in 9 months. This was according to the Bangko Sentral ng Pilipinas (BSP).
OFW remittances provide a crucial cash flow to the Philippines by helping increase the amount of money that is spent and saved locally.
Meanwhile, approved foreign investments dropped by 82% YoY in the 1st quarter to hit P27.99 billion, said the Philippine Statistics Authority (PSA). This was the lowest level in 1.5 years.
New foreign investments can bring in more jobs to the country, and also increase the government’s revenue through taxes. These effects, in turn, can help the economy grow.
Additionally, Trade Secretary Ma. Cristina Roque signed a memorandum of understanding (MoU) with South Korea’s Trade Minister Cheong In-Kyo.
The agreement seeks to boost the 2 countries’ collaboration on critical minerals, electric vehicles, and green energy.
With the news mixed, it may be best to maintain your strategy for now as you wait for more concrete signals.
