A report that the U.S. manufacturing sector is expanding sent stock markets soaring on Friday.

The TSE 300 added 73.30 point to end the week at 7,710.80.

The sentiment was clearly positive with advancers topping decliners 653 to 440. Another 189 issues were unchanged. Volume was 177.6 million shares.

A report from the Institute for Supply Management, formerly known as the National Association of Purchasing Management, showed U.S. manufacturing activity rose in February for the first time in one-and-a-half years. Its index of business activity rose to 54.7 in February from 49.9 in January, for the first reading above 50 since July 2000.

As well,.the U.S. Commerce Department reported that consumers spending rose 0.4% in January, boosting hopes of an economic recovery.

Overall, nine of the TSE 300’s 14 sub-indexes closed higher, led by a 1.7 % jump in the financial services sector.

Canadian Imperial Bank of Commerce gained $1.25 to $53.55, while Royal Bank closed up 94¢ at $51.65.

Banking stocks continued to rise on stronger than expected first-quarter earnings from the country’s biggest banks.

The paper and forest stocks climbed 1.8% on reports that a settlement in the long-running softwood trade dispute between Canada and the United States could be near.

Abitibi-Consolidated Inc. gained 46¢ to close at $14.15. Tembec Inc. added 30¢ to $12.70.

TVX Gold was the most active stock on the TSE, with 20.9 million shares changing hands. The stock shed 7¢ to end the week at $1.07.

The S&P/CDNX Composite Index closed up 8.52 at 1,126.50. Trading was heavy on a volume of 39.1 million shares, with 292 advances, 191 declines and 523 issues unchanged.

On Wall Street, stocks ended with big gains Friday, thanks to broad-based strength spurred by solid economic data and promising news from the semiconductor sector.

The Dow Jones industrial average ended higher by 262.73 points, or 2.6%, to 10,368.86, and the Nasdaq climbed 71.26 points, or 4.1%, to 1,802.75. The S&P 500 added 25.05 points, or 2.3%, at 1,131.78.

The Canadian dollar gained 0.37¢ to US62.79.