Resource stocks pushed Toronto markets to solid gains Tuesday, while U.S. markets got a boost after the Bush administration pressured China to overhaul its currency system.

At close, the Toronto Stock Exchange S&P/TSX composite index was up 48.12 points or 0.52% at 9371.40. The TSX Venture Exchange slipped 4.18 points or 0.26% to 1593.63.

New York’s Dow industrial average jumped 79.59 points or 0.78% to 10331.88. The Nasdaq composite added 9.72 points or 0.49% at 2004.15, while the S&P 500 index was up 8.11 points or 0.7% to 1173.8.

The Canadian dollar reversed direction, moving 0.23 of a cent higher to US78.99¢ late in the session after high-profile Tory MP Belinda Stronach defected to the Liberals.

On Bay Street, the TSX was led by energy stocks, which added 1.91% and gold stocks, up 1.83%, with the other mining groups, metals and mining and materials, adding 2.78% and 1.58, respectively.

Among the more active stocks were: Placer Dome Inc., up 23¢ or 1.47% to $15.86; Encana Corp., up 87¢ or 2.13% to $41.65; Suncor Energy Inc., up $1.00 or 2.17% to $47.18; and Goldcorp Inc., up 52¢ or 3.37% $15.95.

On Wall Street, stocks jumped late in the day after investors reacted quickly and positively after the Bush administration declared that China may be using its centralized control over its currency to unfairly affect trade — a move that could be hurting the U.S. trade deficit.

The announcement helped reverse Wall Street’s losses for the session. Stocks had sold off modestly after the Labor Department’s Producer Price Index, which measures wholesale prices, rose 0.6% in May, more than the 0.4% economists had expected. With volatile energy and food costs removed, so-called core PPI rose 0.3% vs the 0.2% expected on Wall Street.

China’s yuan currency is pegged to the dollar in international trading, which has made China far more competitive than the U.S. due to its lower costs and centralized economy. While not outright accusing China of currency manipulation, the Treasury Department said it may do so in the future unless the Chinese government switches to a flexible exchange system.

Crude oil futures edged higher, though the Treasury’s stance on China helped Wall Street shrug off the increase. A barrel of light crude was quoted at US$48.97, up 36¢ on the New York Mercantile Exchange.