The Toronto stock market closed Friday at its highest level for the year as the U.S. shed fewer jobs than expected last month, raising hopes that the economy is finally set to start creating new positions.

The S&P/TSX composite index ran ahead 150.17 points to 11,975.14, about 229 points higher than where it started the year.

The Canadian dollar moved 0.01 of a cent higher to US97.04 cents.

The U.S. Labour Department said that the economy shed 36,000 jobs last month. But that figure was far less than the 50,000 losses that had been expected. The unemployment rate held steady at 9.7 per cent.

“When the numbers flashed this morning I thought, that’s good — I was braced for something a little worse,” said John Johnston, chief strategist at The Harbour Group at RBC Dominion Securities.

The Labour Department said the storms that pummelled the U.S. East Coast throughout the month may have affected job losses, but wouldn’t quantify the impact.

The Dow Jones industrial average moved up 122.06 points to 10,566.2, while the Nasdaq composite index rose 34.04 points to 2,326.35. The S&P 500 index climbed 15.73 points to 1,138.7.

Canadian employment data for February will be released next Friday.

The Toronto market rose three per cent for the first week of March trading as earnings from TD Bank (TSX:TD) and Bank of Montreal (TSX:BMO) boosted the financial sector. Commodity stocks have also buoyed the TSX this past week with prices for oil and metals higher on Friday.

The base metals sector led advancers, up 3.78 per cent, as the May copper contract added four cents to US$3.42 a pound. Teck Resources (TSX:TCK.B) gained $1.37 to $41.84 and FNX Mining (TSX:FNX) was up 80 cents to $15.09.

The April crude contract on the New York Mercantile Exchange was ahead $1.29 to US$81.50 a barrel as the U.S. jobs data raised hopes for higher demand and sent energy sector up 1.54 per cent. Canadian Natural Resources (TSX:CNQ) climbed $2.54 to $74.50 while EnCana Corp. (TSX:ECA) was up 41 cents to $35.22.

There was also buying activity in the oilpatch as Daylight Resources Trust (TSX:DAY.UN) said it is buying West Energy Ltd. (TSX:WTL) for $570 million in cash and shares, including debt, as the junior oil trust seeks to expand its holdings in the Pembina oil region of central Alberta. Daylight units fell 17 cents to $10.75 while West Energy shares shot up 77 cents or 18.1 per cent to $5.02.

Gold miners were also in positive territory with the April gold contract up $2.10 to US$1,135.20 an ounce. Goldcorp Inc. (TSX:G) gained 87 cents to $41.53 and Barrick Gold Corp. (TSX:ABX) was 61 cents higher to $41.55.

Railroad stocks helped pull the industrials sector 2.09 per cent higher. Canadian National Railways (TSX:CNR) advanced $1.23 to $57.92 while Canadian Pacific Railway (TSX:CP) climbed $1.44 to $56.61.

The TSX Venture Exchange moved ahead 16.09 points to 1,557.93.

Meanwhile, Greek lawmakers have approved an austerity package to save euro4.8 billion (US$6.52 billion) in budget costs and help reduce the country’s crushing debt load. The measures include increases in consumer taxes, and cuts in public sector workers’ pay of up to eight per cent.

The cutbacks are key in convincing bond markets to lend Greece money at less restrictive rates than it is now paying, and to win support from the European Union.

In other corporate news, coffee chain Tim Hortons (TSX:THI) said it was preparing to serve up a new format for its U.S. locations as part of its expansion plans over the next three years. The company also said it was aiming for same-store sales growth of three per cent to five per cent in Canada and two per cent to four per cent in the United States. Tim Hortons shares gained 81 cents to $32.73.

Shares in engineering firm SNC-Lavalin Inc. (TSX:SNC) jumped $2.20 to $52.35 after the firm said it was hiking its quarterly dividend by two cents to 17 cents a share. The announcement came as the company reported a fourth-quarter profit of $98.7 million or 65 cents per share, up from a profit of $61.3 million or 49 cents per share in the year-earlier quarter.