Nebuloch

When you read "Add x-y [type] damage" on an item, assume it is always local and only afflicts your attacks. The only exception for this is if the "add x-y [type] damage" is on belts, rings, amulet or quivers, and in that case it will apply to all of your spells and attacks (the usual example are the Circle rings from Synthesis). Mind, however, that usually that modifier on jewellery clearly states it applies only on attacks (for example, any Iron or Steel Ring) or spells.

Likewise, when a weapon has a "+x% increase physical damage" modifier, it only apply that increase to the flat damage of the weapon, and it is not global. In order to have it globally applied (thus, even to physical spell), the modifer has to be in an Implicit (for example, Maraketh axe base type) or must be in an item which is not a weapon (for example, Devoto's Devotion decreases your global physical damage output)