* TSX closes up 185.21 points at 11,635.85
* Resources, financials lead rise
* China exports surge almost 50 percent
* ECB announced extra liquidity for banks (Updates to close)
By Claire Sibonney
TORONTO, June 10 (Reuters) - Toronto’s main stock index closed sharply higher on Thursday, led by the heavyweight resource and financial sectors, after China reported a surge in exports and upbeat sentiment about European Central Bank moves boosted the outlook for demand and global growth.
Official data showed Chinese exports surged 48.5 percent in May over a year earlier, well above forecasts for a 32 percent gain, confirming a Reuters report from Wednesday. [ID:nTOE65901X]
The price of oil rose more than $1 to over $75 a barrel as as the solid Chinese figures and a rosier demand forecast by the International Energy Agency attracted buyers, lifting the TSX’s powerhouse energy group 2.3 percent. [O/R]
Financials, which have been lagging recently, gained 1.6 percent after the ECB said it would provide unlimited liquidity to banks until the end of this year and kept rates on hold, while pressing on with its policy of buying euro government bonds. [ID:nLDE6590CW]
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE closed 185.21 points, or 1.6 percent, higher at 11,635.85. All of the 10 main groups were higher.
“It’s a very broad-based strength off a market that was very clearly oversold,” said Jean-Francois Dion, vice-president and portfolio adviser of Canadian equities at RBC Dominion Securities.
“I think we’re seeing at least some short-covering pretty much across the board.”
Copper prices firmed on expectations of higher Chinese demand, pushing the TSX’s base-metal subsector up 4.8 percent. First Quantum Minerals (FM.TO) shot up almost 8 percent to C$55.44 while Teck Resources TCKb.TO jumped 5.3 percent to C$34.19. [MET/L]
Fertilizer producers also helped lift the broader materials sector, with Potash Corp (POT.TO) ahead 3.7 percent at C$103.54 and Agrium (AGU.TO) up 3.4 percent at C$54.87, as corn futures moved higher on bullish data in the latest U.S. Department of Agriculture crop report. [ID:nN10226987]
$1=$1.03 Canadian Reporting by Claire Sibonney; editing by Rob Wilson