CANADA STOCKS-Commodities shake TSX after China action
* S&P/TSX composite ends 1.06 percent lower at 11,820.18
* Resource shares hurt by drop in prices after China news
* Fertilizer companies hit by record U.S. corn production
* Telecoms the lone sector to advance (Updates prices, adds details)
By Ka Yan Ng
TORONTO, Jan 12 (Reuters) - Toronto's main stock index sagged more than 1 percent on Tuesday as resource prices came under pressure on news that China's central bank was tightening monetary policy at a faster than expected pace.
In its strongest step yet, China rocked global financial markets with a surprise increase in commercial banks' required reserves, a move that pushed gold to a session low, and knocked down commodity currencies, including the Canadian dollar, against the greenback. [MKTS/GLOB] [ID:nTOE60B095] [FRX/]
"China's decision to change some of the banking structure with bigger deposits certainly had an effect in terms in trying to cool some of the demand," said Brian Pow, vice president, research, and equity analyst at Acumen Capital Partners in Calgary.
"We're a natural resources country so I think you're going to see people trying to figure out whether that will cool off some of the demand for the mining side." Continued...