PSEi sets...

China’s economy grew 7.9 percent in the fourth quarter of 2012, up from the previous quarter’s 7.4 percent. Stronger quarterly growth was widely expected after earlier data showed retail sales, factory output and other indicators rising.

China’s economy picked up to 7.9 percent in the fourth quarter, beating analyst estimates, as exports and industrial output recovered.

In the local market, all subinidices were in the green, led by service firms that rallied 2.29 percent or 41.44 points to 1,854.05.

Advancers outpaced decliners, 103 to 60, while 48 stocks did not change. Value of traded shares jumped to P9.34 billion from P7.32 billion a day ago.

Prices of most active shares rose, led by toptraded and index heavyweight Philippine Long Distance Telephone Co. that rallied 3.17 percent or P86 to P2,800.

Other major markets in Asia were also up after signs that the US economic recovery is gaining traction and a rebound in China’s growth emboldened investors to plunge back into equities.

Japan’s Nikkei 225 soared 303.66 points to 10,913.30, recouping all of Thursday’s losses and more as the yen slipped against the dollar.

Hong Kong’s Hang Seng rose 262.02 points to 23,601.80. South Korea’s Kospi added 0.3 percent to 1,980.79. Australia’s S&P/ASX 200 rose 0.3 percent to 4,771.50. Benchmarks in Singapore, Taiwan, Indonesia and mainland China rose. Malaysia and New Zealand fell.

Investors became more optimistic Thursday after the US Commerce Department issued a strong report on housing starts for December. Builders broke ground on houses and apartments at a seasonally adjusted annual rate of 954,000 Ñ more than 12 percent higher than November.

Unemployment figures were a further sign of economic recovery. The US government said the number of Americans seeking unemployment aid plummeted to a five-year low last week.

“US economic data continued to show steady and gradual growth, and that gave a fresh boost to market sentiment,” said Gary Yau of Credit Agricole in a market commentary.