March 4, 2009 / 3:55 PM / 9 years ago

CANADA STOCKS-TSX higher on hopes for China recovery

* TSX up 1.79 percent at 7,768.54

* Energy leads TSX up as oil prices rise

* Chinese manufacturing data boosts resource stocks (Adds details, quote)

By Jennifer Kwan

TORONTO, March 4 (Reuters) - Toronto’s main stock index rose on Wednesday morning, after touching a five-year low on Tuesday, on hopes for a recovery in China, which would boost the market’s resource-based companies.

The Toronto market joined stock markets around the world in fighting back on Wednesday from multi-year lows as investors hunted for bargains after three days of steep losses. [nL4107311] U.S. stocks also opened higher after data showed signs of a rebound in China’s manufacturing industries. [ID:nSP488798] [ID:nPEK16693]

“That obviously helps in turns of the Canadian market in particular the energy and mining sectors,” said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier.

“People are looking for some good news here.”

The biggest contributors to the index’s rise included a mix of energy and materials stocks with Suncor Energy (SU.TO) up 5.8 percent at C$26.46 and fertilizer producer Potash Corp of Saskatchewan (POT.TO) gaining 4.1 percent at C$103.15.

Energy stocks were higher as oil rose above $43 a barrel due to an oil leak and fire on a Russian pipeline.

At 10:13 a.m. (1513 GMT), the S&P/TSX composite index .GSPTSE was up 136.92 points, or 1.79 percent, at 7,768.54, with nine of its 10 main groups higher. Financials fell 1 percent.

Nakamoto said the optimism over the news from China overcame a report in the United States that showed private sector job losses accelerated in February, suggesting hefty employment declines are on the way when the U.S. government releases payrolls data on Friday. [ID:nN04352056]

On the downside, Goldcorp (G.TO) dropped 0.6 percent at C$36.24, while Kinross Gold (K.TO) shed 1.3 percent at C$20.45.

$1=$1.29 Canadian Reporting by Jennifer Kwan; Editing by Peter Galloway

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