Markets on both sides of the border climbed sharply Monday as investors engaged in bargain hunting. The S&P/TSX Composite Index rose 108.40 points to close at 7,357.42.

Before Monday, the TSX benchmark index had fallen for 10 straight sessions.

In Monday’s trading the TSX energy, industrial products, and health-care sub-indices all rose at least 2%. The information technology index gained 3.38%. Gold stocks didn’t fare as well, the gold sub-index was off 4.5%.

Biovail was one of the leading gainers, up $3.12 to $50.63. The biotech company won U.S. FDA approval for its Cardizem drug for treating high blood pressure.

Energy stocks rose along with crude oil prices. EnCana climbed $1.39 to $47.25.

Tech stocks enjoyed broad increases. Ballard Power gained $2.38 to $29.99; Celestica climbed $1.01 to $38.71; Nortel added 14¢ to $2.70.

Financial stocks also rose, despite news that two banks – TD and Bank of Nova Scotia – faced a total of $112.5 million US in exposure to XO Communications – a U.S. telecom company that filed for Chapter 11 bankruptcy protection Monday.

TD is on the hook for $62.5 million US; it issued a release late Monday saying it classified that loan as impaired in the second quarter and took a reserve at that time.

Overall, advances outpaced declines 587 to 490, with 205 issues unchanged. Volume was 149.7 million shares worth $2.59 billion.

The TSX Venture Exchange was down 14.34 points at 1,182.19.

In New York, stocks rallied sharply, as investors used an upside pre-announcement from McDonald’s as a reason to go bargain-hunting in a technically oversold market.

The Dow Jones Industrial Average closed up 213 points to 9,687. The Nasdaq gained 49 points to 1,553, and the S&P 500 added 29 points to 1,036.

Commodity price weakness nudged the Canadian dollar lower, off 0.10¢ at US64.60¢.