THE Philippine Stock Exchange index (PSEi) surged by 208.84 points, or 3.23 percent, on Thursday to close at 6,680.68, as US inflation settled at 8.5 percent in July.

Philstocks Financial Inc. research associate Claire Alviar, Rizal Commercial Banking Corp. chief economist Michael Ricafort and Regina Capital Development Corp. Managing Director Luis Limlingan said investors cheered as the US consumer price index in July settled at 8.5 percent.

“Overnight, US markets went up after the July inflation came better than expected at 8.5 percent from the 8.7-percent consensus. The latest print brings optimism as investors expect the Federal Reserve to finally slow down from its hawkish stance,” Alviar said.

She added that the dollar’s strength may get eased as well, favoring most currencies, especially to the Philippine peso.

Excellent corporate earnings, a strong peso exchange rate, notes of a possible dovish tone of the Bangko Sentral ng Pilipinas, and the transaction between TV5 and ABS-CBN also helped propel local market sentiment, Ricafort added.

The July inflation data also led to slight easing in US Treasury yields, with the benchmark 10year US Treasury yield now at 2.77 percent.

In the United States, investors are waiting for the producer price index.

Limlingan said that oil prices rose due to encouraging figures for US gasoline demand. Brent crude futures rose 68 cents, or 0.7 percent, to $96.99 a barrel, while US West Texas Intermediate crude futures gained 83 cents, or 0.9 percent, to $91.33.

The PSEi’s rally was also strong, registering a net value turnover of P8.27 billion, higher than the yearto-date average of P6.31 billion.

Total volume was at 917,289,439 shares, with 92,916 trades made.

All sectors were in the green and led by properties, advancing 4.46 percent.

Advancers beat decliners, 144 to 51, while 43 securities remained unchanged.