CANADA STOCKS-TSX gains 2 pct on week as resource stocks push higher


* TSX up 74.67 points, or 0.56 percent, at 13,399.42

* U.S. stimulus and Chinese growth boost Canada's resourcestocks

By Alastair Sharp

TORONTO, Oct 25 (Reuters) - Canada's main stock index gained2 percent this week, with Friday's broad-based gains led byheavyweight energy and banking stocks as the index extended itstwo-year peak.

Investors are growing optimistic about the resource-richindex amid the increased likelihood of extended monetarystimulus in the United States and renewed Chinese growth.

"The investment theme for Canadian stocks is different nowversus just a few weeks ago," said Marcus Xu, a portfoliomanager at MY Capital Management in Vancouver.

After suffering from ties to poorly-performing emergingmarkets, the commodities sectors are now likely to benefit asinvestors seek to make use of excess liquidity, he said.

"When liquidity is really high, eventually it is going todrive a rally in commodities," Xu said. "I'm surprised it didn'thappen earlier."

The Toronto Stock Exchange's S&P/TSX composite index ended up 74.67 points, or 0.56 percent, at 13,399.42.It gained 2 percent for the week, adding to gains of 1.9 percentand 1 percent in the prior two weeks.

The index is at its highest level since July 2011.

Suncor Energy Inc was the single biggest positiveinfluence, gaining 1.6 percent to C$37.66. The integrated energycompany reports third-quarter earnings next week.

Pipeline company TransCanada Corp also helped, up1.6 percent at C$46.96, and Canadian Natural Resources added 0.8 percent to C$33.32.

Teck Resources Ltd pulled back 0.9 percent toC$30.27 after a sharp jump on better-than-expected earnings onThursday.

John Ing, president of Maison Placements Canada, said globalmacro-economic trends would likely remain favorable for Canada'sresource stocks.

"My view is that the super cycle is still intact," he said."The much talked-about slowdown in China is a self-imposedslowdown in order to have orderly growth rather than theboom-bust periods we have in the west. They will still needresources and the appetite remains strong."

Supporting that point, Chinese factory data showed neworders at their highest in seven months in October.

Financial stocks, which along with resources play anoversized role in the index's fortunes, also gained.

Toronto-Dominion Bank was up 0.6 percent to C$94.10and Bank of Nova Scotia gained 0.5 percent to C$62.39.

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