Technology shares led Canadian markets higher Friday morning, while some positive economic news finally gave something for U.S. to cheer about.

At midday, the S&P/TSX was up 62.85 points or 0.73% to 8731.14, while the TSX Venture Exchange advanced 3.79 points or 0.23% to 1633.17. In New York, the Dow Jones industrial average jumped 97.78 points or 0.97% to 10178.05 and the Nasdaq was ahead 38.32 points or 2.02% to 1935.16. The S&P 500 was up 14.95 points or 1.34% to 1129.53.

The Canadian dollar slipped 0.09 of a cent to US79.17¢.

In Toronto, tech shares were ahead 1.49% as a group, led by Nortel Networks, which was trading at $4.36, up 8¢ or 1.87%. Celestica was up 31¢ or 1.93% to $16.36, while Research-in-Motion fell 74¢ or 0.77% to $95.60 on profit-taking.

Energy issues were also up, by 1.11%, even as the price of crude dipped; financials were ahead by 0.54%.

Only gold and consumer stocks were lower. The latter group was pulled lower by Molson Cos., which was down 10¢ or 0.31% on heavy trading after the brewer said late Thursday its summer-quarter earnings would be lower than expected due to slow sales in Canada and ongoing problems with profitability in Brazil. Molson also disclosed that it is considering a $200-million writedown on its Brazilian assets.

In other market news, the TSX said it will suspend trading in steelmaker Ivaco Inc. shares on Oct. 15 for failing to meet listing requirements.

In New York, newly optimistic investors sent stocks sharply higher after economic data showed strength in manufacturing and construction. Wall Street greeted the departure of PeopleSoft Inc.’s chief executive by buying up technology shares.

With the Institute of Supply Management’s manufacturing index posting the 16th straight month of growth in the sector, investors’ optimism over the strength of the economy was renewed. Strong increases in construction spending also improved the market’s mood,

As oil prices continued to fall below the US$50 per barrel mark, analysts said investors could mark the beginning of the quarter with a surge in stock buying. A barrel of light crude was quoted at US$49.56, down 8¢ on the New York Mercantile Exchange.

PeopleSoft surged $1.75 to US$21.60 after the business software maker fired chief executive Craig Conway, replacing him with chairman and founder David Duffield. The company is currently fending off a US$7.7-billion takeover bid by rival Oracle Corp., which gained 63¢ to US$11.91 on the news.

Semiconductor shares saw renewed interest after J.P. Morgan upgraded two semiconductor equipment makers, Novellus Systems Inc. and Teradyne Inc., breathing new life into the struggling technology sector. Novellus Systems climbed $1.43 to US$28.07, while Teradyne rose 77¢ to US$14.17. The Philadelphia Semiconductor Index was up more than 4.3% as well.

Northwest Airlines Corp. announced that CEO Richard Anderson was leaving the company to become executive vice president at UnitedHealth Group Inc. Northwest moved 30¢ higher to US$8.51, while UnitedHealth was up 2¢ at US$73.76.

In overseas markets, London’s FTSE 100 index gained 87.50 points at 4,658.3. Frankfurt’s DAX 30 added 2.51% and the Paris CAC 40 was up 2.28%.

Asian stock markets closed mostly higher, with the key index ending at a record high in Indonesia. Shares also rose in Tokyo after an economic survey by the Japanese central bank showed increasing corporate optimism in Japan.

Tokyo’s Nikkei Stock Average of 225 issues gained 161.6 points, or 1.6%, to 10,985.17.

The market was closed in Hong Kong for a public holiday.