CANADA STOCKS-TSX rises on commodities, auto bailout hopes

Wed Dec 10, 2008 11:39am EST
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* Mining stocks climb; Rio Tinto to cut 14,000 jobs

* Financials sag as Great-West issues equity

* Nortel falls, to explore bankruptcy scenario -report (Adds quote, details)

By Jennifer Kwan

TORONTO, Dec 10 (Reuters) - Toronto's main stock index shot higher on Wednesday morning on higher oil and metals prices and as optimism over global stimulus measures, including a possible bailout of the U.S. auto industry, lifted market sentiment.

The resource-laden materials sector led the way up, climbing 8.1 percent, with Barrick Gold (ABX.TO: Quote) up 7.6 percent at C$37.75, and Goldcorp (G.TO: Quote) up 9.7 percent at C$33.94.

Mining stocks rose as global miner Rio Tinto (RIO.AX: Quote) said it would cut 14,000 jobs, slash capital spending by more than half and sell more assets as it battles a collapse in commodity prices. [ID:nSP365347]

The beaten-down resource stocks were higher, in part, in response to the news, analysts say.

"The Rio Tinto move probably helps in the long run because they'll take capacity out of the system," said David Whetham, a resource fund manager at Scotia Cassels.   Continued...