The Toronto stock market got off to a strong start to September amid improved manufacturing data from China and major deals in the telecom and tech sectors.
The S&P/TSX composite index finished higher 86.60 points to 12,740.50.
The Canadian dollar added 0.15 cents at 94.95 cents U.S.
The rise in the Toronto market was led by a surge in the telecom sector after U.S. giant Verizon Communications Inc. said it was no longer interested in entering the Canadian wireless market.
Verizon had announced Monday that it was paying $130 billion U.S. for a 45% stake in Verizon Wireless owned by British cellphone carrier Vodafone.
Shares in Canada's top three wireless companies rose as result, with Rogers Communications up $3.06, or 7.4%, to $44.65, BCE Inc. climbed $1.63, or 3.8%, to $44.82 and Telus Corp. jumped $2.16, or 6.7%, to $34.49.
Meanwhile, tech companies also advanced after Microsoft Corp. announced it was buying Nokia Corp.'s lineup of smartphones and a portfolio of patents and services for $7.2 billion U.S. The purchase increased buyout hopes for BlackBerry, sending the Canadian smartphone maker's stock up eight cents to $10.72.
BlackBerry is in the midst of a review of its "strategic alternatives," which could result in the sale of its operations or an agreement to take the company private, though so far no potential bidders have publicly emerged.
On the commodity markets, copper prices ran ahead following two reports -- both released Monday -- that showed China's manufacturing sector improved last month after prolonged weakness. China is the world's biggest consumer of copper, which itself is an economic barometer as it is used in so many applications.
The HSBC purchasing managers' index rose to 50.1 points in August, a level that indicates expansion as output and new orders edged up slightly and order backlogs rose at the fastest pace in two years. The official China Federation of Logistics and Purchasing PMI showed increasing expansion, rising to 51 from July's 50, which was the highest level in 16 months.
December copper got extra lift from the strong U.S. manufacturing data and gained seven cents to $3.30 U.S. a pound, sending the base metals sector up, as Teck Resources advanced 88 cents to $27.40.
The energy sector gained as Suncor Energy rose 66 cents to $36.16.
In the gold sector, Goldcorp Inc. gained 33 cents to $31.43.
Financials also provided lift as Bank of Montreal ran up 46 cents to $66.57.
Jobs data will also weigh on markets this week.
Statistics Canada is expected to report Friday that the economy created about 30,000 jobs in August.
ON BAYSTREET
The TSX Venture Exchange held onto gains of 2.27 points to end Tuesday at 941.58
All but four of the 14 Toronto subgroups were higher by day’s end, led by telecoms, leaping 4.4%, while global base metals hiked 2.6% and the metals and mining group, up 2.5%.
The four laggards were utilities, down 1.3%, information technology, off 0.5%, and consumer staples, down 0.3%.
ON WALLSTREET
Worries over potential U.S. action in Syria chilled investor enthusiasm Tuesday and overshadowed optimism surrounding the announcement of two mega-mergers.
The Dow Jones Industrials ended still ahead 23.65 points at 14,834.
The S&P 500 index picked up 6.75 points to 1,639.72. The NASDAQ ran ahead 22.74 points to 3,612.61
All three indexes ended the trading day higher, but pulled back from earlier highs when leaders in the House of Representatives said they would support President Obama's plan for a U.S.-led strike on Syria.
The two deals announced over the Labour Day weekend are set to transform the technology industry.
In the second-biggest merger ever, Verizon said it will pay $130 billion U.S. to take full control of Vodafone, and Microsoft said it was buying Nokia's mobile phone business for $7.2 billion U.S.
Shares of Microsoft dropped 5% following the deal announcement, while Nokia's shares soared. Some traders mocked Microsoft's poor performance in the mobile phone space and thought Blackberry (and even Oracle) might be as worthy of a takeover as Nokia.
Investors liked the agreement between Time Warner Cable and CBS which will end a month-long blackout and restore CBS programming to about three million viewers. Both stocks rose Tuesday.
However, investors had some reasons to remain wary, following reports of a ballistic missile launch in the eastern Mediterranean region, which revived concerns about a U.S.-led strike on Syria.
Israel's Ministry of Defense confirmed that Israeli forces and the U.S. Missile Defense Agency had carried out a missile test and said Israel would release further information about the launch soon.
On the economic front, manufacturing data in the U.S. came in above expectations, after better-than-expected manufacturing data was released in Europe and Asia over the long weekend.
Prices for the 10-year U.S. Treasury plummeted, raising yields to 2.85% from Friday’s 2.75%. Treasury prices and yields move in opposite directions.
Oil prices recovered 88 cents to $108.53 U.S. a barrel.
Gold prices gained $16.70 to $1,412.80 U.S. an ounce.
