TORONTO (Reuters) - Toronto's main stock index finished higher yesterday, helped by strong bank issues, as easing worries over euro zone debt levels overrode concerns about monetary tightening in China.

The influential financial group was up 0.84 percent, with Royal Bank of Canada gaining 1.92 percent to C$55.32. Bank of Montreal rose 1.91 percent to C$60.33 and Bank of Nova Scotia advanced 1.15 percent to C$54.65.

"We're just over a week away from when all the financials are going to start reporting," said Michael Sprung, president at Sprung & Co. Investment Counsel.

"There's a lot of anticipation out there that this is going to be an okay quarter for the banks."

The Toronto Stock Exchange's S&P/TSX composite index closed up 86.32 points, or 0.67 percent, at 12,956.33. Nine of the TSX's 10 main sectors finished higher.

The energy group rose 1.03 percent, with Encana Corp. rising 2.81 percent to C$29.26 and Talisman Energy gaining 2.43 percent to C$20.22.

After an initial retreat, the market largely shrugged off news that China would raise bank reserve requirements for the second time in two weeks, as it continued its fight to rein in prices.

Markets have worried that China's tightening will cool growth and cut demand for commodities such as oil and metals.

Fears that European sovereign debt levels could undermine the global recovery have eased in recent days on expectations that a multi-billion-euro aid plan to end Ireland's debt crisis will be unveiled next week.

Research In Motion was another big mover, finishing the session 2.07 percent higher at C$59.76.

"It's always hard to tell...but they've had some good publicity with respect to companies adopting their new (PlayBook tablet computer) that integrates well with the BlackBerry system," said Mr. Sprung.