CANADA STOCKS-Golds, financials lead TSX rebound
* TSX rises 0.63 percent to 12,649.92
* Materials, banks lead rebound
* Investors reassess Chinese rate hike (Updates to close)
TORONTO, Oct 20 (Reuters) - Toronto's main stock index rebounded on Wednesday as gold miners and financials were strong performers in a broad rally, one day after the index slumped on an unexpected Chinese interest rate hike.
Gold prices rallied as investors assessed the initial reaction to China's rate hike as overblown, while the greenback weakened, boosting U.S. dollar-denominated commodities and sending the materials sector up more than 1 percent.
"It doesn't really indicate the depth of how much they're going to tighten," said Youssef Zohny, associate portfolio manager at Van Arbor Asset Management, referring to China's rate move.
"The primary trend is investors are looking to scoop up shares in materials, gold, and companies that could benefit from quantitative easing (by the Federal Reserve), which at this point is still speculation," Zohny said.
Financials gained 0.72 percent, rising for a fourth straight session, helped in part by higher earnings at U.S. bank Wells Fargo & Co. Toronto-Dominion Bank (TD.TO: Quote) rose 1.12 percent to C$76. Continued...