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* TSX rises 105.73 points, or 0.9 percent, at 12,028.77
* Seven of 10 sectors stronger (Adds details, comment)
By Claire Sibonney
TORONTO, Oct 18 (Reuters) - Toronto's main stock index swung sharply higher on Tuesday, tracking a surge in oil prices and U.S. equities, on news that France and Germany had reached an agreement to increase the euro zone's rescue fund to 2 trillion euros.
Leading the advancers, Suncor Energy (SU.TO) jumped 3 percent to C$30.66, Canadian Natural Resources (CNQ.TO) rose 2.9 percent to C$32.88 and Canadian National Railway (CNR.TO) added 2.8 percent to C$74.50.
At 3:42 p.m. (1942 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 105.73 points, or 0.9 percent, at 12,028.77. Seven of the 10 main sectors were stronger.
The Guardian newspaper, citing EU diplomats, noted the increase to the bailout fund was part of a "comprehensive plan" to resolve the region's debt crisis, which should be endorsed at a summit this weekend.
"It changes the ballgame ... but it still has to go through the whole European scheme," said Subodh Kumar, chief investment strategist at Subodh Kumar & Associates in Toronto.
"Those numbers are what people were hoping for and highlighted as what would reduce the financial crisis in Europe. "
($1=$1.01 Canadian) (Reporting by Claire Sibonney; editing by Rob Wilson)