TSX rises on stronger global factory data

Wed Feb 1, 2012 4:47pm EST
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By Jennifer Kwan

TORONTO (Reuters) - The TSX index rose broadly on Wednesday as sentiment got a lift from encouraging manufacturing data from three of the world's biggest economies, which eased fears about slow global growth.

The index's financial sector led the way with a 1.1 percent gain as data showed factory activity rose in China, the United States and Germany in January.

Royal Bank of Canada (RY.TO: Quote) was up 1.7 percent at C$53.28, and Toronto-Dominion Bank (TD.TO: Quote) climbed 0.5 percent to C$77.96. Bank of Nova Scotia (BNS.TO: Quote) rose 0.6 percent to C$51.84.

The Chinese figures were especially encouraging, said Philip Petursson, managing director of the portfolio advisory group at Manulfie Asset Management.

"What we've got is some positive economic data out of China showing perhaps some reaccelerating of their economy, which is putting risks to the upside - meaning things are looking better than what people perhaps thought even a couple weeks ago," he said.

"China has done a pretty good job at engineering a soft landing."

Corporate earnings have also been flowing in at a "healthy pace," Petursson said.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE finished the day up 65.51 points, or 0.53 percent, at 12,517.66, with nine of its 10 main sectors higher. The consumer staples sector, down 1.3 percent, was the lone group in the red.   Continued...

<p>People walk by a Bay Street sign inside the financial district in Toronto October 10, 2008. REUTERS/Mark Blinch</p>