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* Energy shares highlight TSX rebound from opening fall
* Nagging global bank worries cap gain (Adds comments and details)
By Frank Pingue
TORONTO, March 9 (Reuters) - Toronto's key stock index was higher on Monday morning after a rocky start as a surge in oil prices helped to boost energy shares and erase the index's 1 percent fall at the open, which was triggered by bank fears.
A turnaround in oil prices helped to bolster the weighty energy sector to a gain of 3 percent and offset weakness in just about every other sector on the index.
That offset much of the drag coming from the big financial index, which was down 0.4 percent as worries about global banks weighed on markets overseas and carried into the North American session at the open.
In Britain, Lloyds Banking Group (LLOY.L) reached a rescue deal that will give the government a stake of up to 77 percent. [ID:nL9208557].
Japan's Nikkei stock market average fell 1.2 percent to a 26-year closing low, which also shook sentiment in North America early in the session.
"Energy shares have helped ... and the U.S. markets are higher, so that helps as well," said Gavin Graham, director of Investments at BMO Asset Management.
At 10:15 a.m. (1415 GMT), the S&P/TSX composite index .GSPTSE was up 96.22 points, or 1.27 percent, at 7,687.83.
$1=$1.30 Canadian Editing by Peter Galloway; Editing by Peter Galloway