TORONTO (Reuters) - Toronto's main stock index finished higher yesterday, as the financial sector was boosted by an agreement on new global rules for bank capital reserves and resources got a lift from robust Chinese economic data.

The heavily weighted financial sector gained 1.4 percent as Royal Bank of Canada climbed 2.1 percent to C$54.60, and Toronto-Dominion Bank rose 1.3 percent to C$75.94.

Aiming to prevent a repeat of the international credit crisis, regulators agreed over the weekend on new global bank capital rules that, while tighter than before, were not as harsh as some had feared.

Canadian banks responded by saying they expect to be able to adopt the Basel III rules for maintaining reserve capital with little trouble, meaning dividend hikes and share buybacks could be on the way once Canada's banking regulator gives the go-ahead.

"Clarity on capital requirements is a big sigh of relief," said Youssef Zohny, associate portfolio manager at Van Arbor Asset Management in Vancouver.

"Canadian banks are already well capitalised and now have some clarity and a green light to implement their dividend plans."

The Toronto Stock Exchange's S&P/TSX composite index closed up 52.77 points, or 0.4 percent, at 12,149.86, with six of its 10 main sectors higher.

Base-metal miners rose 4.5 percent while energy issues gained 0.6 percent, as prices for oil and copper rose on data that showed strong Chinese demand growth and industrial output.

Teck Resources gained 3.6 percent to C$40.68 and First Quantum Minerals rallied 5.6 percent to C$67.29. Canadian Natural Resources added 2.4 percent to C$34.99.

The Canadian dollar shot higher against the US currency yesterday as upbeat Chinese data and relief about the impact of new global banking regulations lifted investor appetite for riskier assets.

Strong China data including factory and money growth figures showed that the economy remained buoyant despite government efforts to clamp down on bank lending and property speculation.