Manila: The temporary easing of tensions in the Middle East provided relief to the Philippine financial markets, with both the stock market and the peso recovering on Tuesday. The Philippine Stock Exchange index (PSEi) rose 0.63 percent to 5,936.20 points, and the broader All Shares by 0.57 percent to 3,295.23 points.

According to Philippines News Agency, the Philippine market rebounded after the previous session's sharp sell-off, supported by improved sentiment following Donald Trump's remarks about delaying the potential attack on Iran's power plants. This temporary easing of geopolitical tensions helped lift equities, mirroring gains seen in global markets after the announcement. However, investors remain cautious as oil prices stay elevated amid ongoing supply risks and uncertainty in the Middle East.

Most of the sectoral gauges tracked the PSEi, led by Mining and Oil after it rose 3.4 percent. The Financials index followed with an increase of 1.63 percent, along with Property, 1.51 percent; Holding Firms, 0.94 percent; and Industrial, 0.74 percent. Only the Services index ended the day in negative territory, after declining by 0.49 percent.

Volume was thin at 633.85 million, amounting to PHP5.7 billion. Advancers led decliners at 129 to 63, while 59 shares were unchanged. The improvement in the local bourse was mirrored by the peso after it closed the day's trade at 59.95 against the US dollar from 60.30 on Monday. Its recovery showed early on when it started the day at 59.90 from the previous session's 60.15 opening. It traded between 59.68 and 60.15, bringing the day's average to 59.92. Volume rose to USD2.69 billion from the previous day's USD1.65 billion.