Overall market sentiment also got a lift from American data showing a better-than-expected reading for consumer confidence and strength in the U.S. manufacturing sector.

The S&P/TSX composite index climbed 71 points to 12,493.91 while the TSX Venture Exchange added 5.96 points to 1,320.44.

"It looks like the housing market has bottomed, manufacturing seems to be picking up in different areas of the world, so there’s encouraging stuff there," said Gareth Watson, vice-president of Investment Management and Research at Richardson GMP Ltd.

"But eventually that will take time to flow through to corporate earnings as well."

The Canadian dollar shook off early losses to move up 0.18 of a cent at 100.28 cents US.

U.S. markets were off session highs but the Dow Jones industrials was still ahead 109.72 points to 13,206.18, the Nasdaq composite index gained 35.01 points to 3,012.24 and the S&P 500 index rose 11.75 points to 1,423.91.

The Conference Board says its consumer confidence index increased in October to 72.2, the highest level in almost five years.

Consumers were more confident after seeing better job growth, the report noted.

And a day before the U.S. non-farm payrolls report is released, payroll firm ADP said that the American private sector created 158,000 jobs in October. Economists had estimated the U.S. created about 120,000 jobs last month.

Meanwhile, the Institute for Supply Management says its index of factory activity rose last month to 51.7, up from September’s reading of 51.5. A reading above 50 indicates expansion.

There was also some rare good news for the global economy as the China Federation of Logistics and Purchasing’s monthly purchasing managers index improved to 50.2 from 49.8 in September. Numbers above 50 on the 100-point scale indicate activity is expanding.

Economic growth fell to a 3 1/2 year low of 7.6 per cent in the quarter ended in September but other indicators, including retail sales and investment, improved.

"The improvement in both measures reinforces our expectation that China’s growth will pick up in Q4, ending a seven-quarter streak of slowing activity," said BMO Capital Markets senior economist Benjamin Reitzes.

Metal prices advanced in the wake of the Chinese PMI data with December copper up three cents to US$3.55 a pound and the base metals sector was ahead 3.3 per cent. Teck Resources (TSX:TCK-B.TO - News) ran ahead $1.61 to $33.31.

But shares in uranium miner Cameco (TSX:CCO.TO - News) fell $1.14 or 5.89 per cent to $18.23 after it reported quarterly net earnings of $82 million or 21 cents per share, compared with $39 million or 10 cents per share for the same period a year earlier.

Adjusted earnings were $52 million or 13 cents per share compared with $104 million or 26 cents per share in 2011. Quarterly revenue came in at $408 million, compared to $527 million a year ago. Analysts expected profit of 27 cents per share and $562.3 million in revenue.

Cameco also reduced its long-term production target to 36 million pounds of annual supply by 2018, down from 40 million pounds a year, due to ongoing market uncertainty following last year’s Fukushima nuclear disaster in Japan.