The TSX jumped at the opening of trading Thursday and held those gains through the day as the market built on Wednesday's late-day rally.

The S&P/TSX composite index ended the day with a gain of 250 points to 12,907. Most sectors finished in positive territory.

S&P/TSX composite index 3-month chartS&P/TSX composite index 3-month chart

A rebound in commodity prices sent resource stocks sharply higher as China reported that its economy grew by 11.4 per cent in 2007 — its fastest pace in 13 years.

China has been the main driver of commodity price gains in the last few years as its booming economy picked up steam.

The metals and mining sub-index surged 5.1 per cent. First Quantum Mineral gained $3.58 to $76.29; Teck Cominco added 99 cents to $31.24. Potash Corp. stock soared $7.92 to $129.80 as it reported its fourth-quarter profit doubled and its 2008 outlook appeared rosy.

Gold futures surged $25 to $908.10 US an ounce in New York trading, boosting the TSX gold sub-index by 3.8 per cent. Platinum futures hit a record.

The TSX energy group was driven 3.3 per cent higher by a big jump in oil prices. Crude oil futures soared $2.42 to $89.41 US a barrel as U.S. energy inventory figures showed an unexpected drop in heating oil supplies.

The financials sub-index initially rose but fell later in the day and closed with a 0.7 per cent decline. It was the banking sector that had led Wednesday's rally.

In New York, the Dow Jones industrial average jumped 108 points to 12,379, building on Wednesday's gain of nearly 300 points.

The Nasdaq composite index was up 44 points to 2,361.

Loonie nears parity

The Canadian dollar was up 1.70 cents to 99.39 cents US as the prospect of further aggressive rate-cutting by the U.S. Federal Reserve looked to widen the spread between U.S. and Canadian interest rates.  

A weaker U.S. dollar and the big gain in commodity prices also gave the loonie support, traders said.

The Canadian dollar continued to rise in after-hours trading — approaching 99.70 cents US. The loonie hasn't traded at par with the U.S. greenback since Jan. 8.