TSX jumps on Scotiabank results, U.S. data

Tue Mar 5, 2013 4:42pm EST
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By John Tilak

TORONTO (Reuters) - Canada's main stock index rose on Tuesday, helped by Bank of Nova Scotia's (BNS.TO: Quote) dividend hike and surprise profit jump as well as U.S. economic data that spurred broad gains.

Investors also took comfort from China's announcement of record government spending this year, which helped lift commodity prices.

Data showed that the vast U.S. services sector grew at its fastest pace in a year in February.

"The ISM numbers are a bit of a surprise. That's giving more credence to a supportive U.S. economy," said Youssef Zohny, portfolio manager at Stenner Investment Partners, a unit of Richardson GMP.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended up 28.63 points, or 0.23 percent, at 12,736.04, after falling in the previous two sessions. Seven of the ten main sectors gained.

The bounce was even more pronounced in the United States, Canada's largest trading partner by far, where the Dow index .DJI surged to close at a record high, breaking through levels last seen in 2007. .N

Commodity investors took encouragement from China's vow on Tuesday to deliver economic growth this year of 7.5 percent and concentrate on boosting domestic consumption. The target is unchanged from 2012.

Along with China's spending plans, which were expected to sustain the country's economic growth, the market was encouraged by signs that the world's top central banks are likely to stick to their easy monetary policies.   Continued...

A Toronto Stock Exchange (TSX) logo is seen in Toronto November 9, 2007. REUTERS/Mark Blinch