Manila - Philippine share prices rose 2.4 per cent Thursday on positive news that inflation slowed and most Asian stock markets were up.

The 30-share composite index of the Philippine Stock Exchange gained 44.52 points to close at 1,892.07.

More than 777.77 million shares worth 1.71 billion pesos (36.38 million dollars) were traded.

Gainers led losers 56 to 22 while 43 issues were unchanged.

Traders said market sentiment was boosted by the government's announcement that inflation in January declined to 7.1 per cent from December's 8 per cent.

Manila  - The Philippines' inflation rate slowed down to 7.1 per cent in January as prices of food and other basic commodities eased, the government said Thursday.

The January index was down from 8 per cent in December, but up from 4.9 per cent in the same month last year, the National Statistics Office said.

The office said the decline was caused by price decreases in fuel and utilities and slower price increases for food and commodities.

Taipei- Taiwan on Wednesday rejected the Philippines' claim to the disputed Spratly Islands, and its plan to include the mineral- rich South China Sea archipelago within its own territorial waters.

"Historically, geographically and factually, the Spratly Islands and its surrounding waters have long been the traditional territory of the Republic of China, without doubt," said Taiwan's Foreign Ministry in a statement.

Manila  - Communist rebels raided the house of a town mayor in the eastern Philippines, carting away a shotgun and 12 handheld radios, a regional police spokesman said Wednesday.

Superintendent Eliazar Bron said no one was injured when about 20 heavily armed guerrillas barged into the house of Mayor Helen de Castro of Bulan town in Sorsogon province, 390 kilometres south-east of Manila, on Tuesday.

Bron said government troops have been dispatched to pursue the rebels who fled to nearby mountains.

Manila  - Tourist arrivals in the Philippines rose 1.5 per cent in 2008 despite the global economic slowdown, the government said Wednesday.

Tourism Secretary Ace Durano said 3.13 million tourists visited the Philippines last year, up from 3.09 million in 2007.

"The increase in the visitor count in 2008 is greatly attributed to the strong performance of the European markets, led by Russia, which posted a growth of 34 per cent," Durano said.

Manila - Two employees of a lending firm were abducted in the southern Philippines in the latest in a series of kidnappings, police said Wednesday.

The victims, Lea Patris and Ammad Sali, were kidnapped Tuesday in Sumisip town in Basilan province, 900 kilometres south of Manila, while they were collecting payments.

The provincial police chief, Senior Superintendent Salik Macapantar, said a third companion was able to escape and report the incident to police.

Macapantar said police officers and marines were pursuing the kidnappers.