The peso yesterday closed at 42.70 to the US dollar, up from Wednesday's close of 42.855. The unit traded from 42.85 to 42.70. The total value of transactions at the Philippine Dealing System reached $635.63 million.

Meanwhile the Philippine Stock Exchange index (PSEi) went up 15.73 points to 2,878.26, a 0.55 percent hike.

Gainers edged losers, 64 to 36, with 59 stocks unchanged.

Trading reached P2.75 billion.

"The positive sentiment in Wall Street trickled down to Asian markets," said Jose Vistan, AB Capital Securities, Inc., research head.

Francisco Liboro, president of PCCI Securities said the "leveling off" of inflation would help "translate into improved earnings" for the rest of the year.

Other analyst noted that investors are encouraged when companies posted earnings that were above expectations.

Citiseconline noted that the market has shown some support and is maintaining a rallying ranges and channels, which sustain the market in its assault to recovery.

"Quite positive is the fact that the rally has held up even with low momentum and proceeds to inch up despite continuing selling pressure," it said.

Most actively traded Ayala Corp. was down P7.50 to P332.50. Philippine Long Distance Telephone Co. was up P25 to P2, 690.