U.S. stock markets were boosted by strong jobs numbers, with the Dow Jones closing above 14,000 for the first time since October 2007. The benchmark index ended the trading day at a five-year high of 14,009.79, up 149.21.

The U.S. Labour Department's payroll report showed the economy added 157,000 jobs in January. In addition, the number of jobs created in November and December were revised upward, adding 127,000 jobs more than previously thought.

Markets were also lifted by strong manufacuring numbers. The ISM Manufacuring index was 53.1 points in January, up from 50.2 points in December. Any number above 50 indicates an expansion in manufacturing activity.

"At a global level, stock markets have been buoyed by signs that economic outlook is improving," according to David Madani, Canada Economist at Capital Economics.

But Madani is not so optimistic about Canada.

"The improvement in Canadian equities has been unusually modest in comparison," he said in a research note, saying the TSX has been held back by weak domestic demand.

"We think the recent drop in Canadian oil prices and beginning of a potentially severe housing market correction point to sluggish growth ahead."

In Toronto, the TSX was lifted by the strong economic news out of the U.S., rising 83.59 points to 12,768.83. The Canadian dollar was unchanged from the day before at 100.27 cents U.S., while the price of oil dropped 5 cents to $97.44.