Philippine shares slipped on Friday to be on track for their worst week in six, as a spike in coronavirus cases and a slump in monthly imports led to concerns over recovery in its economy.
The benchmark index shed 0.2% and eyed a weekly fall of over 2.5%, its biggest decline since the week ended January 29.
The Philippine economy was among the fastest growing in the region before the pandemic, but strict and lengthy restrictions and slow vaccine procurements have dampened the path to recovery.
The country, which has the second-highest number of COVID-19 cases and deaths in Southeast Asia, recorded its highest daily increase in COVID-19 cases in nearly six months on Thursday.
Its trade deficit came in at $2.42 billion in January, the widest in 12 months, with imports sliding 14.9%, and exports falling 5.2% for their biggest decline in five months, government data showed on Friday.
"The ongoing slump in imports suggests that growth pains for the Philippines will be around for some time", said ING economist Nicholas Mapa.
Authorities attempted to calm investors' nerves. President Rodrigo Duterte said on Thursday the economy should be reopened soon, while the central bank is not inclined to tighten monetary policy at this time, its governor said.
Elsewhere, equities tracked broader market gains after US President Joe Biden signed a $1.9 trillion stimulus bill into law, and as a retreat in bond yields overnight soothed global concerns about accelerating inflation.
Shares in South Korea and Indonesia added about 1% each, while Thailand climbed 0.5%. Jakarta's benchmark was poised to end higher for a sixth straight week.
Most regional currencies strengthened against the dollar as calming bond markets lifted investor sentiment and boosted appetite for riskier Asian currencies.
The Taiwan dollar, South Korean won and the Indonesian rupiah gained between 0.1% and 0.3%.
Further soothing nerves about rising yields, the European Central Bank said on Thursday it would accelerate money-printing to keep a lid on euro zone borrowing costs.