The Philippine Stock Exchange index (PSEi) advanced by 66.68 points or 1.04 percent to 6,500.28 as of midday Wednesday, buoyed by improved investor sentiment following strong local economic data and easing concerns over US trade tensions.

After opening at 6,438.62, the main index gained momentum through the morning session, supported by upbeat figures from the latest labor force survey and a rebound in bank lending, which have bolstered confidence in the domestic economic outlook.

Traders also drew optimism from the recent extension of the US reciprocal tariff deadline to 1 August, giving the Philippines more room to finalize a trade agreement with Washington.

Meanwhile, the peso slightly recovered, trading at 56.40 against the US dollar as of 1:18 PM, after opening weaker at 56.55, based on data from the Bankers Association of the Philippines.

Market analysts continue to expect cautious trading throughout the day, with gains tempered by global uncertainty, particularly surrounding US trade policy shifts.