TORONTO - Stock markets accelerated their climb in afternoon trading as TSX energy stocks led a broad gain, with better-than-expected job numbers furthering positive sentiment.
Toronto's S&P/TSX composite index moved up 242.90 points to 10,209.95, while the Canadian dollar surged up 1.58 cents to 86.87 cents US.
Statistics Canada said the economy added 35,900 jobs in April, against market expectations of a 50,000 decline, although all the added jobs were in self-employment and the national jobless rate remained at a seven-year high of eight per cent.
The TSX Venture Exchange moved up 13.24 points to 1,066.27.
In the United States, layoffs slowed in April to a six-month low of 539,000. Economists had expected 620,000 job losses, after 663,000 in March.
New York's Dow Jones industrial average moved up 146.87 points to 8,557.
The Nasdaq composite index gained 18.10 to 1,734 while the S&P 500 index rose 18.71 to 926.
Investors expressed relief at the results of the American government's "stress tests" on the 19 largest U.S. banks, released after markets close Thursday.
"Getting past the stress tests was a milestone," said Jim Dunigan, managing executive of investments for PNC Wealth Management. "That was a cloud hanging over our head for the past several months. The good news is there were no surprises."
Though much about the results had been leaked, traders still seemed pleased, even though the report said 10 banks would need to raise a total of about US$75 billion in new capital if the economy worsened. There had been fears this number would be much larger.
On the TSX, energy stocks gained 5.3 per cent as crude oil rose $1.68 to US$58.39 a barrel on the New York Mercantile Exchange.
The gold sector lost 1.4 per cent as the June bullion contract gained 70 cents to US$916.20.
Northgate Minerals Corp. (TSX: NGX.TO) saw first-quarter net earnings of US$21.4 million, up from $19.7 million a year ago on higher gold production at lower cash cost. Its shares gained seven cents to $1.99.
Air Canada (TSX: AC-B.TO) stock dropped 23 per cent after a loss of $400 million for the first quarter, deepening year-earlier losses of $288 million. The company attributed the loss to a combination of reduced passenger travel and foreign exchange losses. Its shares lost 41 cents to $1.39.
Packaged meat and sandwich maker Premium Brands Income Fund (TSX:PBI-UN.TO) said its first-quarter profit fell to $2.1 million from $3.4 million, although sales rose more than 10 per cent. The market sliced 17 cents from its units to $9.07.
Cineplex Galaxy Income Fund (TSX: CGX-UN.TO) said more patrons took refuge from economic gloom in its cinemas, generating first-quarter earnings of $3.7 million, reversing a year-earlier loss of $2.3 million. Cineplex units gained five cents to $15.27.
Overseas, Britain's FTSE 100 gained 1.4 per cent, while Germany's DAX index was up 2.3 per cent and France's CAC-40 added 1.9 per cent.
Japan's Nikkei stock average rose 0.5 per cent, while Hong Kong's Hang Seng gained one per cent.
