Philippine stocks closed flat other Asian stocks rallied due to solid corporate earnings and expectations of further US interest rate cuts outweighed worries about inflation even as oil hit a record high above $101 a barrel.

Gold also hit a record above $945 an ounce, and silver touched a 27-year high, as funds poured into a wide range of commodities, betting they will outperform in an environment where growth is slowing and prices are rising.

Japan’s benchmark Nikkei rose 2.1 percent, trimming most of Wednesday’s losses, while MSCI’s index of other Asian stocks gained 1.2 percent.

Since tumbling more than 10 percent in January, Asia stocks have endured choppy, volatile trade and investors are wary of calling an end to that.

Taiwan stocks rose 1.6 percent, in line with Hong Kong, but Shanghai fell more than 2 percent on concerns about further new share issues flooding the market.

Australian stocks added 1 percent.

The Philippine Stock Exchange index (PSEi) closed 4.99 points less at 3,176.06, a 0.16 percent decline. Trading turnover reached 1.82 billion shares for P2.61 billion.

The market however lost its steam toward the end of trading.

Grace Cerdenia, 2tradeasia.com chief operating officer, said investors’ position for the day was focused mostly on 2nd and third liners given the absence of big funds.

Cerdinia added that the current political condition is a "blip" in the market’s upside potential.

Foreign funds were a net seller of P21.19 million. Most actively traded Globe Telecoms, Inc. was up P10 to P1,615. Philippine Long Distance Telephone Co. was down P10 to P2,930.

Ayala Corp. was down P2.50 to P452.50. PNOC Energy Development Corp. (PNOC-EDC) was steady at P6.40. Ayala Land, Inc. was steady P12.25. Manila Electric Co. was up P0.50 to P79.

Meanwhile US stocks rose as a strong profit outlook from Hewlett-Packard Co lifted technology shares and the Federal Reserve signaled its intention to keep cutting rates.

Hewlett-Packard shares jumped nearly 8 percent while International Business Machines Corp. rose 2.7 percent as investors bet strong overseas sales will sustain profits in the computer industry. HP shares led the major advancers in both the Dow and the S&P 500.

The Dow Jones industrial average .DJI shot up 90.04 points, or 0.73 percent, to 12,427.26. The Standard & Poor’s 500 Index .SPX gained 11.25 points, or 0.83 percent, to 1,360.03. The Nasdaq Composite Index IXIC advanced 20.90 points, or 0.91 percent, to 2,327.10.