April 2, 2012 / 3:02 PM / 7 years ago

CANADA STOCKS-TSX climbs on positive surprise from China

* TSX up 87.10 points, or 0.7 percent, at 12,479.28
    * Eight of 10 sectors stronger as resources, banks climb
    * Strong Chinese manufacturing offsets weak euro zone data

    By Claire Sibonney	
    TORONTO, April 2 (Reuters) - Toronto's main stock index
edged higher o n M onday in a broad- based rally after
surprisingly strong manufacturing data out of China trumped
further signs of economic contraction in Europe.	
    China's official Purchasing Managers' Index hit an 11-month
high with a stronger-than-expected reading, offsetting data that
showed an eighth straight month of contraction in the euro
zone's manufacturing sector. 	
    Canada's resource-heavy index outperformed Wall Street on
the brighter news from Chinese data that helped calm worries
over demand prospects in the world's second-largest economy. 	
    The materials group was up 1.2 percent, energy shares
climbed 0.7 percent and financials edged up 0.2 percent. Among
the most influential gainers, Royal Bank of Canada rose
0.9 percent to C$58.33, Canadian Natural Resources was
up 1.5 percent to C$33.54 and Suncor Energy advanced 0.9
percent to C$32.88.	
    "The (Chinese) purchasing managers index is one of the least
gameable pieces of information around the world and that makes
it very objective and very important ... and even the optimists
were surprised," said Arthur Salzer, chief executive officer of
Northland Wealth Management.	
    "It really looks like the Chinese housing market is
beginning to bottom here and that they're going to be seeing
growth year over year and that's very, very important for Canada
given its relationship to the commodity sector," said 	
    At 10:55 a.m. (14:55 GMT), the Toronto Stock Exchange's
S&P/TSX composite index was up 87.35 points, or 0.7
percent, at 12,479.28. Eight of the 10 sectors were in positive
    In individual company news, Progress Energy Resources
 surged 10.3 percent to C$11.03 after Malaysia's state
oil firm Petronas was reported to be studying plans
for a Canadian gas asset acquisition that may exceed $5 billion.
    "The prices are so low in that part of the energy sector
that it makes sense for strategic acquisitions from other
companies now," said Salzer.	
    Miner Ivanhoe Resources rose 2 percent to C$16.00
after Chinese aluminum giant Chalco stepped up its
diversification, agreeing to pay $926 million for a controlling
stake in Mongolian coal miner SouthGobi Resources in a deal with
Ivanhoe billionaire Robert Friedland.
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