The Philippine stock market bounced back on Tuesday, tracking the rally in European equities.

The bellwether Philippine Stock Exchange index jumped by 1.39 percent or 63.84 points to 4,642.76. The broader all-share index added 0.78 percent or 24.45 points to 3,139.32.

Trading volume reached 9.09 billion shares worth 5.96 billion pesos (135.73 million U.S. dollars) with 113 stocks advancing, 59 declining, and 37 unchanged.

Of the six counters, only the mining and oil sector bucked the trend and retreated by 0.24 percent.

"Philippine stocks rebounded from a two-day slump, aided by the recovery in equity prices globally," brokerage AB Capital Securities, Inc. said.

The rally of European stocks on Monday trickled down in Asia, sending shares closing positively on Tuesday despite the downgrade of the Euro one rescue fund by credit rating agency Standard & Poor.

Adding fuel to the market's gains was the release of better than expected gross domestic product results from China, AB Capital said.

China's economy grew by 8.9 percent in the fourth-quarter of last year, higher than the 8.7 percent consensus expectation.

This, AB Capital said, may pave the way for more monetary easing by reducing reserve requirements.

"Technically, the market remains slightly above overbought territory, as it approaches a recently-set all-time closing high. Thus far, however, there have been no market moving news with a negative spin to deflate optimism that has sent prices higher," said analyst Justino Calaycay of Accord Capital Equities Corp..

Stocks in the 30-company index mostly closed higher. Among those that were picked up include Metropolitan Bank and Trust Co., heavyweight Philippine Long Distance Telephone Co., and Semirara Mining Corp.