China’s Great Hall of the People in Beijing played host to the Chinese Communist Party plenum.KIM KYUNG-HOON/Reuters
The Toronto stock market moved up amid optimism surrounding a sweeping economic reform plan from the Chinese government and confidence that the Federal Reserve likely won't be cutting stimulus as early as thought.
The S&P/TSX composite index rose 28.58 points to 13,459.96.
The Canadian dollar dipped 0.04 of a cent to 95.49 cents US amid strong manufacturing data for September.
Statistics Canada reported that manufacturing shipments rose 0.6 per cent to $49.9 billion in September. Economists had expected they'd rise about 0.5 per cent.
U.S. indexes were mixed with the Dow Jones industrials ahead 14.83 points to 15,891.05, the Nasdaq slipped 3.03 points to 3,969.71 while the S&P 500 index gained 0.65 of a point to 1,791.27.
In a report issued after a closely watched Communist Party conference, China's ruling party pledged to ease barriers to private competitors in markets controlled by state companies. At the same time, they reaffirmed that government-owned industry is the core of the economy.
It left out many details of what role private or foreign competitors might be allowed in government-controlled industries such as energy, telecoms and finance. But it outlined changes clearly intended to make industries more efficient and productive by injecting more competition.
Chinese leaders are under pressure to replace a growth model based on exports and investment that delivered three decades of rapid growth but has now run out of steam.
Meanwhile, the woman most likely to succeed Ben Bernanke at the helm of the Fed made it clear that she's prepared to continue the central bank's low-interest rate policies to keep the U.S. economic recovery on track.
During a confirmation hearing before the Senate Banking Committee, Janet Yellen warned critics that any potential harm those policies pose are outweighed by the risk of leaving a still-weak economy to survive without them.
Her statements convinced markets that the central bank won't reduce its US$85 billion of monthly bond purchases until at least March.
Financials led TSX advancers and Sun Life Financial (TSX:SLF) climbed 19 cents to C$37.01.
On the commodity markets, December crude edged up 60 cents to US$94.36 a barrel and the energy sector ticked ahead 0.23 per cent. Bonavista Energy (TSX:BNP) rose 31 cents to C$12.54.
The gold sector was slightly higher while December bullion inched up 80 cents to US$1,287.10 an ounce.
Copper prices failed to benefit from the Chinese announcement and the December contract slipped one cent at US$3.15 a pound. The base metals component was off 0.05 per cent.
On the corporate front, private equity firm Onex Corp. (TSX:OCX) reported Friday it earned US$399 million or $3.22 a share in its latest quarter, compared with a profit of $98 million or $1.50 per share a year ago. Revenue grew 16 per cent to $7.13 billion and its shares advanced 32 cents to $56.92.
Montreal-based Saputo Inc. (TSX:SAP) has raised its offer for an Australian dairy company, which is the focus of a heated takeover battle. Saputo's new offer is $9 per share in Australian currency, valuing Warrnambool Cheese and Butter at about A$499 million, or about C$487 million. Saputo's previous offer was A$8 per share. Saputo shares gained 26 cents to C$48.96.
Media giant Torstar Corp. (TSX:TS.B) is reorganizing the advertising sales operations at the Toronto Star, Canada's largest newspaper, and moving them to an affiliated company. It says Metro English Canada will become the point of contact for advertising placed with the Star, the Metro commuter paper and other properties in the Star Media Group. About 80 jobs are being cut. Torstar shares dipped two cents to $5.72.
European bourses were positive with London's FTSE 100 index up 0.28 per cent, Frankfurt's DAX climbed 0.21 per cent and the Paris CAC 40 was ahead 0.17 per cent.
Earlier in Asia, Japan's Nikkei 225 added two per cent as the yen weakened, trading over 100 to the dollar. Hong Kong's Hang Seng shot up 1.7 per cent and Seoul's Kospi jumped 1.9 per cent.
Australia's S&P/ASX 200 rose 0.9 per cent while stock markets in Southeast Asia and mainland China also gained.