The Toronto Stock Exchange rallied on Wednesday, carried higher by a sharp boost in the heavyweight energy group as oil futures surged 9%.

The S&P/TSX composite index rose 183.13 points, or 2.4%, to close at 7,814.75.

The boost followed gains among stock markets around the world on optimism surrounding a new stimulus plan set to be released in China on Thursday.

Energy stocks surged 6.6% after data showing a surprising decline in U.S. oil inventories sent crude futures higher. Crude oil for April delivery gained US$3.73, or 9%, to end at US$45.38 a barrel on the New York Mercantile Exchange.

Suncor Energy Inc. surged $1.98, or 7.9%, to close at $26.99.

Shares of EnCana Corp. rose $2.89, or 6.1%, to $50.27 and Husky Energy Inc. soared $2.52, or 10%, to $27.83.

Nexen Inc. rose 8.3% to $17.10 and Petro-Canada rose 6.1% to $26.64.

Financial stocks rose 2.5% during Wednesday’s trading.

Shares of Manulife Financial Corp. rallied $0.60, or 5.8%, to $10.91.

Royal Bank of Canada shares advanced 3.1% to $30.58 and Bank of Montreal rose 2.6% to $28.37.

Shares of Sun Life Financial rose 3.1% to $17.98 after reports that the company is in talks to buy the life insurance unit of U.S.-based Hartford Financial Services Group Inc.

Shares of Laurentian Bank of Canada tumbled 6.9% after the company reported that first-quarter net earnings rose to $25 million from $19.1 million a year ago. Laurentian’s stock fell $2.10 to $28.25.

The materials group dipped 2.1% as gold futures continued to drop. Gold for April delivery fell US$6.90, or 0.8%, to end at US$906.70 an ounce on the Comex division of the New York Mercantile Exchange.

The sub-gold index fell 2.9%.

Shares of Barrick Gold Corp. tumbled 4% to $35.25 and Goldcorp Inc. slipped 2.8% to $35.43.

Potash Corp. shares fell $3.40, or 3.4%, to close at $95.70.

Agnico-Eagle Mines Ltd. saw its shares fall 3.4% after it reported that it spent $72 million on exploration in 2008, and raised its estimate of gold reserves by 8% to a record 18.1 million ounces. The company’s shares fell $2.09 to $60.20.

Other materials companies advanced, including First Quantum Minerals Ltd., higher by 7.2% to $33.66, and Agrium Inc., up 3.6% to $43.21.

A boost in junior company stocks sent the junior S&P/TSX Venture composite index up 6.88 points, or 0.8%, to close at 830.95.

The Canadian dollar gained nearly a cent against the American dollar, to close at US78.41¢.

Stocks in New York also finished higher on Wednesday, bouncing back from the 12-year lows that the main indexes have hit in recent sessions.

The Dow Jones industrial average added 149.82 points, or 2.2%, to 6,875.84.

The S&P 500 index gained 16.54 points, or 2.4%, to 712.87, and the Nasdaq composite index climbed 32.73 points, or 2.5%, to 1,353.74.

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