July 13, 2011 / 3:14 PM / 8 years ago

CANADA STOCKS-TSX nears 1 week high, boosted by Chinese data

   * TSX gains 180.12 points, or 1.36 pct, to 13,414.19
 * All 10 sectors advance, resources lead way higher
 * Data shows China’s Q2 growth faster than expected
 * Investors pile into golds as Europe debt crisis weighs
 * Bernanke says Fed ready to ease more if economy weakens  (Adds details)
 TORONTO, July 13 (Reuters) - Toronto’s main stock index surged more than 1 percent on Wednesday morning as strong Chinese growth data fueled optimism for the global recovery and sparked a rally by energy and materials issues.
 Top advancers were broad-based. Canadian Natural Resources (CNQ.TO) led the way with a gain of 2.44 percent to C$40.28. Toronto-Dominion Bank (TD.TO) rose 1.45 percent to C$80.60, while Teck Resources TCKb.TO advanced 2.21 percent to C$50.30.
 At 10:37 a.m. (1437 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 180.12 points, or 1.36 percent, at 13,414.19, its highest level in nearly a week.
 All 10 main index sectors were up, led by a 2.21 percent advance in materials and a 1.74 percent rise in the oil and gas sector.
 Optimism over the global economy gathered pace after data showed China’s economy grew faster than expected in the second quarter, easing fears about a hard landing in the world’s second-largest economy. [ID:nL3E7ID0AS]
 “Their economy is going to continue to grow at a premium to the Western economies and they’re going to continue to have a constant demand for hard assets. That’s a major beneficiary for the Canadian marketplace,” said Peter Chandler, senior vice-president and director, at Canaccord Wealth Management.
 “But you still can’t escape the problems that are out there, that right now tend to be Europe ... and that’s leaving us locked in a trading environment here where the market is stuck in this sideways range.”
 The Chinese data drew attention away from the euro zone debt crisis, where the latest blow came from Moody’s, which downgraded Ireland’s credit rating to junk status on Tuesday.
 That kept investors looking for safe-haven investments in gold-mining stocks. The price of gold, which hit record highs above $1,585 an ounce, is set to mark an eighth consecutive day of gains, something it has not achieved since mid-October 2006, when it rose for nine days in a row. [GOL/]
 Goldcorp (G.TO), up 2.2 percent at C$51.96, and Barrick Gold (ABX.TO), ahead 2.1 percent at C$46.41, were among the top influential risers.
 Overall index gains were also underpinned by Federal Reserve Chairman Ben Bernanke’s comments that the U.S. central bank is ready to ease monetary policy further if the economy weakens and inflation moves lower, suggesting policymakers are actively mulling further stimulus measures. [ID:nW1E7IB008]
 ($1=$0.96 Canadian)  (Reporting by Ka Yan Ng; editing by Rob Wilson)                                        

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