* TSX up 202.43 pts, or 1.7 pct, at 12,311.30
* Italy passes austerity measures package
* Mining stocks lead rally (Adds further details)
By Jon Cook
TORONTO, Nov 11 (Reuters) - Toronto's main stock index jumped more than 1 percent on Friday as commodity prices rose on investor optimism that Italy would pass an austerity package that would calm fears about Europe's debt crisis.
Global stocks were buoyed by the Italian senate's clearing of a package of austerity measures that were demanded by the European Union in the face of Italy's severe debt issues. The budget still has to be cleared by Italy's lower house, leaving a degree of nervousness on behalf of investors. [MKTS/GLOB]
After two straight down sessions, the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 202.43 points, or 1.7 percent, at 12,311.30.
The heavily-weighted materials sector, home to base metal and gold miners, surged more than 2.5 percent, nearly erasing the previous day's losses and leading the broader market higher.
Barrick Gold Corp (ABX.TO) led the sector, rising 2.9 percent to C$53.49, even though bullion prices slipped as progress in Europe curbed safe-haven buying. [GOL/]
The base metals mining sector also performed strongly, jumping 4 percent, led by Teck Resources TCKb.TO, which rose 4 percent to C$39.26. First Quantum Minerals (FM.TO) was up more than 7 percent to C$19.52 after falling more than 20 percent the last two sessions.
All of the index's 10 main sectors were higher, with energy and financials both up more than 1 percent. (Editing by Jeffrey Hodgson)