TORONTO (Reuters) - Canada's main stock index surged to its highest close in a week yesterday, as strong US corporate earnings and buoyant commodity prices eased investor concerns about the health of the economic recovery.

North American stock markets soared on impressive results from Caterpillar, UPS and 3M, recovering from Wednesday's hefty retreat, which followed a gloomy outlook from US Federal Reserve Chairman Ben Bernanke.

Stronger oil and metals prices also helped support the resource-heavy TSX's move higher, with crude futures ending at an 11-week high above $79.

The TSX's key financials, energy and materials sectors all rallied, with Royal Bank of Canada up one percent at C$52, Suncor Energy ahead 2.7 percent at C$33.41 and Teck Resources, climbing 3.6 percent to C$36.42.

"We had some really good quarterly earnings numbers reported by some of the US companies. I think that gave some boost to the US market. The US market always affects the Canadian market to some degree," said Tim Burt, president and chief investment officer at Cardinal Capital Management Inc in Winnipeg, Manitoba.

The Toronto Stock Exchange's S&P/TSX composite index closed up 154.43 points, or 1.34 percent, at 11,667.76, with eight of its 10 main sectors higher.

Utilities fell 0.1 percent, while healthcare shares were down 0.2 percent.

Yesterday's rebound came despite the Bank of Canada's cautious economic assessment. Speaking two days after the bank nudged interest rates higher for the second time in six weeks, Governor Mark Carney said he shared the view of the US Federal Reserve that the world economic outlook is unusually uncertain.

The Canadian dollar finished at its highest level versus the US currency in a week yesterday as oil prices jumped and equity markets rallied, underpinned by a pack of global signals bullish enough to alleviate economic growth fears.

US crude oil futures rose to an 11 week high above $79 a barrel on a potential tropical storm in the Gulf of Mexico and as better-than-expected economic data gave a lift to equities markets.