Toronto stocks finished higher Tuesday, with gains led by mining stocks. The S&P/TSX composite index closed up 53.53 points, or 0.44%, at 12,198.63.

The mining sector itself climbed 2.7%, following news that makes Brazil’s Companhia Vale do Rio Doce the likely winner in the bid for nickel giant Inco Ltd.

Inco shares were 26¢ to $85.60 after the company announced it couldn’t get the necessary shareholder support for a $1 -billion cash and stock takeover bid by Phelps Dodge Corp. The offer from CVRD tops $19 billion.

Teck Cominco Ltd. moved up $3.96 to $78.45 while Breakwater Resources ran ahead seven cents to $1.37.

The TSX energy sector was flat as The October contract for light sweet crude on the New York Mercantile Exchange fell 59¢ to US$68.80 a barrel.

Crude oil futures fell on a weaker gasoline market as the Labour Day weekend signaled the winding down of the summer driving season.

The gold sector rose almost 3% with the December bullion contract in New York up $14.30 to US$646.90 an ounce. Barrick Gold Corp. gained 88¢ to $37.79 and Crystallex jumped 57¢ to $3.77.

The junior S&P/TSX Venture composite index advanced 52.3 points, or 1.89%, to 2,813.59.

The Canadian dollar declined 0.59 of a cent to US89.95¢

The Bank of Canada is set to announce its latest decision on interest rates on Wednesday morning. Economists expect the central bank to leave its key rate unchanged.

In New York, New York markets were slightly higher with tech stocks in the lead.

The Dow Jones industrials index edged 5.13 points higher, or 0.04%, to 11,469.28.

The tech-heay Nasdaq composite index climbed 12.54 points, or 0.57%, to 2,205.7 while the S&P 500 index was ahead 2.25 points, or 0.17%, to 1,313.25.

Intel Corp. added 11¢ to US$19.99 ahead of an announcement from the chip-maker after markets closed that it was laying off 10,500 employees as part of a massive restructuring to eliminate US$1 billion in costs from its balance sheet.