Canada's main stock index jumped to a near two-week high on Tuesday as resources-linked shares gained, while easing COVID-19 restrictions in China raised hopes for stronger global growth.
At 9:37 a.m. ET (13:37 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 197.16 points, or 1.02%, at 19,455.48, extending its rally for a third consecutive session.
The heavyweight energy sector climbed 2.2%, aided by stronger crude prices as major producers Saudi Arabia and the United Arab Emirates looked unlikely to be able to boost output significantly while Western governments agreed to explore ways to cap the price of Russian oil.
"The Canadian markets are likely to cling to this rally amid a rise in crude oil prices as we look at more updates about the ban on Russian supply from the G7 meeting," said Kunal Sawhney, CEO, Kalkine Group.
China slashed the quarantine time for inbound travelers by half in a major easing of one of the world's strictest COVID-19 curbs, which have deterred travel in and out of the country since 2020.
"The rebound could also be further bolstered as the fear about rigorous rate hikes relaxes a bit and investors expand their risk appetite, especially as we see COVID-19 restrictions ease in China and give way to some hopes for more robust growth," Sawhney added.
The financials sector gained 1.1%, while the industrials sector rose 0.9%.
The benchmark index has lost nearly 9% so far this year on concerns over soaring inflation and recession fears, although it has outperformed its North American counterparts due to its exposure to commodities.
The materials sector, which includes precious and base metals miners and fertilizer companies, added 1.0% on the back of stronger copper prices as a weaker dollar reinforced hopes for stronger demand after top consumer China relaxed its COVID quarantine rules.
(Reporting by Amal S in Bengaluru; Editing by Vinay Dwivedi)