* TSX rises 136.41 points, or 1 pct, at 13,591.79
* Eight of 10 sectors stronger (Updates with details, commentary)
By Claire Sibonney
TORONTO, May 6 (Reuters) - Toronto’s main stock index extended gains on Friday morning as commodity prices recovered after a major selloff and as strong employment numbers in both Canada and the United States lifted sentiment.
The powerhouse energy sector, up 2.5 percent, led the advance, as the price of oil rose in volatile trading after U.S. payrolls posted the largest jobs gain in 11 months, which eased fears about the global economic recovery. [O/R] [ID:nOAT004799]
“One of the biggest drivers this week has been commodities, obviously. We were seeing quite a bit of speculation come out of the commodity market, that’s ultimately good for the economy and stocks,” said Youssef Zohny, portfolio manager at Van Arbor Asset Management in Vancouver.
“We do get the pullback in commodity prices, which have been a problem in terms of inflation expectations, potential monetary tightening and in general puts a ceiling on consumer spending.”
At 10:36 a.m. (1436 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 136.41 points, or 1 percent, at 13,591.79. Eight of the 10 main sectors were stronger.
The materials sector, home to miners, was up 1.7 percent, with the price of gold bouncing higher as bargain hunters entered the fray. Silver also recovered from a two-month low hit after a sell frenzy sparked by higher margin requirements and expectations of a stronger U.S. dollar. [GOL/]
“A commodity market returning more to fundamentals is probably positive for commodity producers,” added Zohny.
The TSX retreated for a fourth day on Thursday as resource issues took a heavy hit from a wave of selling across commodity markets that thrashed high-flying oil and metal prices.
Base metal miners also participated in Friday’s rebound, firming 1.5 percent after copper turned positive after the strong U.S. jobs data. [MET/L]
Domestic jobs data also provided a boost with the economy creating 58,300 jobs in April, more than double expectations, while recovering all the full-time positions lost in the recession. [ID:nN06160819]
Manulife Financial (MFC.TO) was the most influential gainer on the index, helping push the weighty financial sector up 0.3 percent. Manulife stock surged nearly 5 percent to C$17.44 after several analysts raised their price targets for North America’s largest life insurer. [ID:nL3E7G61CT]
The insurer posted a lower quarterly profit on Thursday on claims related to the Japanese earthquake, but said it was actively on the lookout for acquisitions, especially in Asia. [ID:nN05267082]
$1=$0.96 Canadian Reporting by Claire Sibonney; editing by Rob Wilson