The Philippine Stock Exchange Index (PSEi) closed higher on Monday, riding a wave of renewed risk appetite across Asian markets.

Investors responded positively to signs that the geopolitical standoff between the United States and Iran is softening, a development that has helped ease pressure on global energy costs.

The rally in Manila mirrored gains seen across the region, where equities extended a broad-based recovery.

The positive sentiment was driven by reports that mediators are actively engaged in implementing an interim peace deal between Washington and Tehran.

This diplomatic progress aims to resolve a conflict that has persisted for two months, creating significant volatility in global markets.

Lower oil prices provided a tailwind for emerging market equities, including the Philippines.