Manila: Local shares closed in the red on Tuesday as investors continue to worry about the escalating tariff war of the United States against Canada, Mexico, and China while the peso finished strong against the US dollar.

According to Philippines News Agency, the Philippine Stock Exchange index (PSEi) slipped by 2.42 percent to the 6,206.55 level, with the All Shares index also declining by 1.72 percent to 3,684.59 points. The downturn was reflected across all counters, with the Property index experiencing the largest drop at 4.45 percent. This was followed by losses in the Services sector, down by 3.33 percent; Industrial by 2.13 percent; Holding Firms by 1.78 percent; Mining and Oil by 1.75 percent; and Financials by 0.78 percent.

"Philippine shares were sold down fueled by investor worries that uncertainty surrounding tariff policies could lead the global economy into a recession. Concerns about the US have been escalating over the past month and were amplified by recent comments from the White House," commented Luis Limlingan, head of sales at Regina Capital Development Corp. The market saw decliners outnumber advancers at 157 to 58, with 41 stocks remaining unchanged.

Meanwhile, the Philippine peso demonstrated resilience, closing stronger at 57.23 to a US dollar, compared to the previous day's 57.41. This gain occurred despite a weaker opening at 57.45, from a 57.25 start the day before. The peso traded within a range of 57.20 to 57.50, averaging 57.36 for the day. Trade volume significantly increased to USD1.38 billion, up from USD815.69 million the prior day.