* TSX up 79.08 points at 11,993.44
* Index hits highest level sine June 21
* Financials, resources lead way
* Gold miners drag (Adds details, commentary)
By Claire Sibonney
TORONTO, Sept 1 (Reuters) - Toronto’s main stock index shot to its highest level in more than 10 weeks on Wednesday, as heavily weighted financial and resource issues rallied after global manufacturing data beat expectations.
China’s purchasing managers’ index staged a moderate rebound in August, after slowing for several months under the onslaught of government measures to rein in credit and deter property speculation. As well factory activity also picked up in the United States. [ID:nTOE68001O] [ID:nN01115840]
In response to the data, oil rose to nearly $74 a barrel and copper hit multi-month highs, sending TSX energy stocks up 1.7 percent and base-metal miners ahead 4.8 percent. [O/R] [MET/L]
Suncor Energy (SU.TO) rose 2.6 percent to C$33.05, while Teck Resources TCKb.TO jumped 4.5 percent to C$37.27.
As well, manufacturing activity in the euro zone expanded for 11 months in a row, although the pace of growth slowed, while Australia’s economy grew at its fastest pace in three years. [ID:nSLAVJE6B9] [ID:nSGE67U0L3]
“A lot of people are optimistic that our little slow patch is perhaps going to be a bit of a soft landing,” said Youssef Zohny, associate portfolio manager at Van Arbor Asset Management in Vancouver.
Economically sensitive financials gained 1.1 percent, following a mixed bag of earnings over the past two weeks. [ID:nN31226185]
At 10:27 a.m. (1427 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 79.08 points, or 0.7 percent, at 11,993.44. Earlier, the index reached 12,016.06, its highest level since June 21.
Dragging on the index, however, were gold mining shares, down 2.3 percent.
“One weakness we’re seeing today is from gold, which has had a very strong run last month, so probably we’re seeing a little bit of profit-taking in that sector,” added Zohny.
In individual company news, Alimentation Couche-Tard [ATDb.TO] soared almost 5 percent to C$24.00, after the Canadian convenience store operator raised its bid for U.S. takeover target Casey’s General Stores (CASY.O) for a second time. [ID:nSGE6800J1]
Enbridge Inc (ENB.TO) rose 0.8 percent to C$53.47, after it moved a step closer to restarting an oil pipeline in Michigan that ruptured last month. [ID:nN31253630]
Canadian Natural Resources (CNQ.TO) was up 2.3 percent at C$35.08 after the company said it expects August production volumes at its Horizon oil sands project to fall from the month before. [ID:nSGE6800FX]
$1=$1.05 Canadian Reporting by Claire Sibonney; editing by Rob Wilson