TSX rallies on China stimulus hopes


03/06/2012 08:43 AST  Reuters

Canada's main stock index rose sharply on Tuesday as oil and mining firms were lifted by hopes of further policy stimulus in China, helping markets shrug off concerns over the deterioration of Spain's banking system.

Equities markets were boosted after Chinese media reported that the government might pump as much as 2 trillion yuan ($315.28 billion) into the economy this year, although this would be well below 4 trillion yuan ($635 billion) of stimulus it did in the wake of the 2008-09 global financial crisis.

The news was a tonic for Canada's struggling materials and energy sectors, which account for about 40 percent of the weighting of the Toronto Stock Exchange's S&P/TSX composite index.

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