TSX posts weekly gain of 2.7%, boosted by China optimism
By Khushi Singh and Fergal Smith
(Reuters) -Canada's main stock index rose on Friday to a six-week high after upbeat economic data from China helped underpin commodity prices, lifting the materials sector.
The Toronto Stock Exchange's S&P/TSX composite index ended up 54.5 points, or 0.3%, at 20,622.34, its fifth straight day of gains and its highest closing level since July 31. For the week, it was up 2.7%.
The materials sector, which includes miners and fertilizer companies, climbed 1.4% on Friday after data from top metals consumer China showed signs that its economy was stabilizing. China's factory output and retail sales grew at a faster pace in August.
Gold rose 0.6%, while copper notched a weekly gain.
"While the numbers today are pleasing from the perspective of risk appetite, investors will probably want to see a trend of better data start to develop before being lured back into Chinese assets with any conviction," said Tim Waterer, chief market analyst at KCM Trade.
Energy was up 0.1% as oil settled 0.6% higher at $90.77 a barrel, notching a 10-month high. Supply tightness spearheaded by Saudi Arabian production cuts combined with optimism around Chinese demand to lift crude prices.
Heavily-weighted financials also gained ground, rising 0.5%.
(Reporting by Fergal Smith in Toronto and Khushi Singh in Bengaluru; Editing by Tasim Zahid and Diane Craft)
