* TSX up 123.27 points, or 1 percent, at 12,446.21
* All 10 of the 10 main sectors are higher
* Gold, energy producers climb with bullion, oil prices
* Commodity prices climb after Bank of Japan rate cut
* Market at highest level since Sept, 2008 (Adds details, quote)
By Solarina Ho
TORONTO, Oct 5 (Reuters) - Toronto's resource-heavy stock index jumped more than 1 percent on Tuesday as commodity prices climbed after Japan lowered interest rates, a move that raised hopes other central banks will take further steps to spur growth.
U.S. data which showed the pace of growth in the services sector beat forecasts also helped Canadian stocks rise to their highest level in more than two years. [ID:nN05186153]
The TSX's materials sector, home to miners, was up 1.8 percent, with gold miners like Agnico Eagle AEM.TO up 2.6 percent at C$73.86, Iamgold Corp (IMG.TO) rising 3 percent to C$18.19, and Barrick Gold (ABX.TO) climbing 2.4 percent to C$48.22.
Gold prices rallied above $1,330 an ounce in Europe, hitting record highs as the U.S. dollar weakened against the euro. Gold is seen by many as a safe haven and tends to move in opposition to the greenback. [GOL/] [FRX]
"Lots of speculation whether another phase of quantitative easing is coming out of the U.S. or Europe -- mostly out of U.S.," said Francis Campeau, a broker at MF Global Canada.
"It's basically sending ... commodities much higher, with gold up more than 1 percent into record territory. Also similar price action on copper."
Other miners that found support from higher metal prices include Ivanhoe Mines (IVN.TO), up 3.3 percent at C$24.60. [MET/L]
The energy group, another key sector on the index, was up 0.9 percent, strengthened by Canadian Natural Resources (CNQ.TO) which rose 1.9 percent to C$37.06 and Nexen Inc NXY.TO up 1.9 percent at C$21.18.
U.S. crude futures for November climbed as high as $82.58. Oil is priced in U.S. dollars on international markets and often moves inversely to the currency. [O/R]
At 10:37 a.m. (1437 GMT) the S&P/TSX composite index .GSPTSE was up 123.27 points, or 1 percent, at 12,446.21.
In company news, Potash Corp (POT.TO), fending off a $39 billion hostile takeover bid from BHP Billiton, was down 1.4 percent at C$145.64. It slammed a report commissioned by Saskatchewan that favors BHP's bid for the fertilizer producer over a potential bid from a Chinese entity.
Pharmacy retailer Jean Coutu Group (PJCa.TO) rose 1.2 percent to C$8.99, buoyed by a stronger second quarter profit. (Editing by Jeffrey Hodgson)