TSX posts year's biggest jump on upbeat China data

Tue Apr 9, 2013 5:13pm EDT
 
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By John Tilak

TORONTO (Reuters) - Canada's main stock index recorded its biggest one-day percentage jump in more than four months on Tuesday as positive economic data from China fueled hopes for a global economic recovery and drove gains in the material and energy sectors.

The sharpest reaction came from gold producers, which were buoyed by a rise in the price of bullion and jumped 3.4 percent.

China's annual consumer inflation cooled in March as food prices eased from nine-month highs and producer price deflation deepened.

The data further lifted other commodity prices such as oil and put the resource-heavy Toronto market, which is sensitive to developments in China, in positive territory for the second straight day after a five-day losing streak in which it lost 3.3 percent.

The benchmark Canadian index also turned positive on the year after slipping into negative territory last week.

"The news about China's inflation being subdued means the monetary policy out there will continue to be easy and the Chinese economy continues to do well," said Elvis Picardo, strategist and vice president of research at Global Securities in Vancouver.

"Anything that gives us some indication that the Chinese economy is on solid footing should be positive for the TSX," he added.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 139.49 points, or 1.13 percent, at 12,484.05. That was the index's biggest one-day jump since November 19, 2012.   Continued...

 
Bay Street signs are seen in the heart of the financial district in Toronto, August 17, 2009. REUTERS/Mark Blinch