* TSX ends up 46.32 points at 12,925.11
* Highest close since Sept. 3, 2008
* U.S. jobs jump, Canadian data shows strength (Updates to close, adds quote)
By Jennifer Kwan
TORONTO, Nov 5 (Reuters) - Toronto's main stock index ended at its highest level in more than two years on Friday after jobs data from the United States, Canada's biggest trading partner, surpassed market expectations.
The U.S. economy added many more jobs than expected last month, and this helped boost commodities in a week in which the U.S. Federal Reserve said it would launch a $600 billion program to buy government bonds to stimulate the ailing U.S. economy. [ID:nN04265378]
"We're starting to see some not insignificant job growth south of the border so that was the big news of the day, and obviously the market was watching that like a hawk," said Paul Taylor, chief investment officer at BMO Harris Investment Management Inc.
Recent U.S. economic data, including Friday's 151,000-job gain in October, has been healthier than expected and this has raised the possibility that the Fed may not have to do as much as thought to shore up the economy.
Investors looked past a poor headline figure on Canada's own employment figures, which showed a rise of just 3,000 jobs in October [ID:nN05281844], and pushed the Canadian dollar to parity with the U.S. currency. The underlying details of the Canadian report were seen a being more favorable for a sustainable economic recovery. [CAD/]
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE soared above 13,000 during the day, but trimmed gains to finish the session up 46.32 points, or 0.36 percent, at 12,925.11. That is the index's highest closing level since Sept. 3, 2008.
The TSX index was up 2 percent for the week.
Six of the index's 10 main sectors were higher, led by the financials and the materials groups, which were up 0.8 percent and 0.6 percent, respectively.
Manulife Financial (MFC.TO), the most heavily traded stock on the market, climbed 4.8 percent to C$14.79. It extended gains to a third session, as several analysts boosted price targets on the country's biggest insurer a day after it reported a smaller than expected loss. [ID:nN04213369] [RCH/CA]
Big gainers in the materials group included Teck Resources TCKb.TO up 4 percent at C$49.71, and First Quantum Minerals (FM.TO), which rose 3.3 percent to C$95.36.
($1=$1.00 Canadian) (Reporting by Jennifer Kwan; editing by Rob Wilson)