GOOD NEWS FROM CHINA BOOSTS TSX

The Toronto stock market racked up a solid gain for a second consecutive day Wednesday amid positive news from China, while the release of minutes from the latest U. S. Federal Reserve meeting did little to shake the conviction that the Fed is in no rush to end its current economic stimulus.

The S& P/ TSX composite index was ahead 50.86 points to 12,534.91 with gains limited by falling gold stocks and retreating bullion prices. The Canadian dollar climbed US0.18¢ to US98.58¢.

U. S. indexes also rose as the minutes showed that some Federal Reserve officials favoured an end to the bond buying program known as quantitative easing as early as this summer. Several others thought that if labour conditions improved as expected, the Fed could slow purchases later in the year and stop them by year- end.

However, that meeting took place well before a dismal employment report for March was released last Friday.

The Dow Jones industrial average rose 128.78 points to a record high close at 14,802.24, while the Nasdaq composite index climbed 59.4 points to 3,297.25. The S& P 500 index also closed at a record high, up 19.12 points at 1,587.73.

The gains followed customs data that showed China posted an unexpected trade deficit of US$ 800 million in March as imports rose 14.1% after having grown 5% in the combined January- February period.

The report suggested Chinese manufacturers and consumers might be buying more, raising hopes for stronger performance from the world’s second- biggest economy. Traders had expected China to post a $ 15.3- billion surplus for last month.

The positive trade data followed the release of lower inflation data Tuesday which gave China some leeway in being able to take further measures to stimulate growth, which came in at 7.9% in the three months ended in December, up from the previous quarter’s 7.4%.

“I think China and the emerging markets in general will continue to grow at high single- digit rates,” said Paul Vaillancourt, managing director of Fiera Capital Canadian Wealth Management. “And with inflation numbers coming in confirming that there is no sort of hard landing in China, that is very positive. And I think we will continue to see some strong demand coming from the region. That obviously impacts raw materials like copper and other metals a bit more.”

The financial sector led advancers, up 1.43% with Scotiabank up $ 1.02 to $ 58.39 and Manulife Financial ahead 39¢ to $ 14.65. The telecom sector gained 0.94% while

Rogers Communications advanced 62¢

to $ 52.35.