Share prices closed up Wednesday on increased risk appetite after it was reported overnight that fewer jobs were created in the United States than anticipated last month.
This led investors to bet on the likelihood of the US Fed holding off further rate hikes.
The peso closed up as well.
The Philippine Stock Exchange index (PSEi) was up 70.29 points, a 1.13 percent hike to 6,259.29.
The broader All Shares index was up 27.57 points or 0.82 percent to 3,382.19.
Gainers edged losers 90 to 82 with 62 stocks unchanged. Trading turnover reached P3.97 billion.
The peso closed at 56.725 to the dollar, up from 56.75 on Tuesday.
The currency opened at 56.68 and hit a high of 56.60 and a low of 56.79. Trading turnover reached $1.23 billion.
Asian currencies were treading water against the US dollar after weak US labor data cemented bets of a pause in interest rate hikes by the Federal Reserve and on optimism over the potential for additional stimulus in China.
Overnight data from the US showed job openings dropped to the lowest level in nearly 2-1/2 years in July, signalling easing labor market pressures and bolstering expectations that the Fed will keep rates unchanged next month.
Markets anticipate a 86.5 percent chance of the Fed standing pat, the CME FedWatch tool showed.
Juan Paolo Colet, managing director at China Bank Capital Corp., said the market had another positive session on the back of sustained bargain hunting inspired by the strong performance of US equities and the fall in US bond yields.
“Sentiment was buoyed by the bigger than expected drop in US job openings and consumer confidence, with investors speculating that this could ease the pressure on the Federal Reserve to hike interest rates,” he added.
Most actively traded Metro Pacific Investments Corp. was steady at P5.12. SMPrime Holdings Inc. was down P0.15 to P30.15. International Container Terminal Services Inc. was down P0.80 to P212.80. BDO Unibank Inc. was up P1.40 to P143. Bank of the Philippine Islands was steady at P107.90. Ayala Corp. was up P1 to P616. ABS-CBN Holdings Corp.-Philippine Depository Receipt was down P0.61 to P2. GT Capital Holdings Inc. was up P14 to P569. SM Investments Corp. was up P31.50 to P844. Ayala Land Inc. was up P0.20 to P28.70.
