* TSX up 91.96 points, or 0.85 percent, at 10,885.33
* Financials rise 1.8 pct on hope about recovery
* Index up 0.9 percent for the week
* Rosy U.S. jobs data overshadows Canada report (Adds official closing numbers, details, quote)
By Jennifer Kwan
TORONTO, Aug 7 (Reuters) - Toronto’s main stock index shot higher on Friday as the market shrugged off a weak Canadian employment report and focused on rosier-than-expected U.S. jobs data, which added to optimism about economy recovery.
The U.S. jobs data for July may be clearest sign yet that the U.S. economy is turning around [ID:nN07385157], and the TSX rose along with U.S. stocks in response.
The index’s financial sector rose 1.8 percent, and gainers included Royal Bank of Canada (RY.TO), up 2 percent at C$51.09, and Canadian Imperial Bank of Commerce (CM.TO), which climbed 4.2 percent to C$68.75.
“The jobs numbers in the U.S. are much better than expectations so it’s just another nail in the coffin of the recession,” said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier.
In Canada, however, job losses were more than double expectations, prompting Finance Minister Jim Flaherty to warn against any “euphoria” over imminent economic recovery. [ID:nN07405786]
The S&P/TSX composite index .GSPTSE closed 91.96 points, or 0.85 percent, higher at 10,885.33, with seven of its 10 main groups rising. The index was up 0.9 percent for the week.
Nakamoto said part of the rise in the hefty financials group, which makes up about one-third of the TSX’s weighting, was investors bidding up stocks following a 5.6 percent decline in the group on Thursday that was spurred in large part by a 50 percent dividend cut by Manulife Financial (MFC.TO).
The energy group sagged 0.1 percent on Friday, pulled down by weaker oil prices. [ID:nSP458159] Suncor Energy (SU.TO) fell 2 percent to C$36.32.
The materials group was lower, down 0.8 percent, as the price of gold eased. Gold miners Kinross (K.TO) and Agnico Eagle (AEM.TO) both fell by just over 2 percent.
($1=$1.08 Canadian) (Reporting by Jennifer Kwan; editing by Peter Galloway)