(New throughout; updates prices)
TORONTO, May 25 (Reuters) - Canada’s main stock index rose on Monday, helped by gains for financial shares, as investors welcomed a stronger-than-expected rebound in German business morale.
* The recovery in Germany’s Ifo institute survey for May offered a glimpse of optimism to battered investors of what lay beyond weeks of economic lockdowns.
* The Toronto Stock Exchange’s S&P/TSX composite index closed up 161.78 points, or 1.1%, at 15,075.42. The index has rallied about 35% since hitting an eight-year low in March.
* The heavyweight financials group rose 1.7%, gaining ground ahead of earnings reports over the coming days from Canada’s major banks.
* The healthcare sector, which includes cannabis stocks, rose 4.9%, while information technology was up 2.1%.
* Shares of Transat AT Inc fell 7% as EU antitrust regulators opened a full-scale investigation into Air Canada’s bid for the Canadian tour operator.
* Financial markets in the United States were closed for the Memorial Day public holiday. (Reporting by Fergal Smith; editing by Grant McCool)