The Philippine Stock Exchange index hit a fresh 10-year high closing at 3,379.37, up 2.38 percent or a hefty 78.43 points led by PLDT.

Foreign net buying was heavy at P600 million.

It was also the index’s best finish since Feb. 10, 1997 when it ended at 3,386.02.

Trading turnover was a hefty 4.94 billion shares for P5.76 billion.

Meanwhile Singapore’s Straits Times index rose 2 percent to hit an all-time high.

Elsewhere in the region, Malaysian shares climbed 0.77 percent, Indonesian stocks gained 1.79 percent, and Thai stocks rose 0.43 percent, boosted by hopes of an interest rate cut and an easing of capital controls.

Market observers said investors were satisfied with indications in the US that the Federal Reserve may keep steady its present interest rates, indicating a possible soft landing on the US’ economic slowdown.

Irvin Ackerman, president of I. Ackerman & Co., Inc., noted that "investors are too optimistic. Everyone is just snapping up almost anything, as long as it has a nice name".

Ackerman however stressed concern on the market’s steep rise which he said could provide some setback for the market.

"I hope the market just do not go up too fast. It should slow down a little. I prefer a market that is just slightly inclined," he said.

Top-traded PLDT was up P55 to P2,620. Metropolitan Bank & Trust Co. was up P3 to P68.

Ayala Corp. went up P20 to P660.

Banco de Oro went up P2.50 to P64. Sister company Equitable PCI Bank was up P9 to P118.