TORONTO (Reuters) - Toronto's main stock index made solid gains yesterday, spurred by stronger oil prices and optimistic comments from US Treasury Secretary Timothy Geithner, while Teck Cominco soared 37 percent on news it had deferred billions in debt payments.

The modest climb in oil prices boosted the heavily weighted energy group by 1.86 percent, while financials climbed 2.8 percent after Geithner said the majority of US banks have more capital than they need in order to be be considered well capitalised.

Bank of Nova Scotia surged 5.6 percent to C$34.33, while insurer Sun Life Financial gained 5.5 percent to C$28.32.

All told, the S&P/TSX composite index climbed 121.02 points, or 1.33 percent, to 9,247.17, overcoming weakness just after markets opened.

Eight of the 10 main TSX sectors rose during the session.

The gain follows a 3.3 percent tumble in the previous session, but comes as equity markets have been on a steady, upwards trajectory since early March.

The TSX index is up 22 percent since March 9, despite continued worries over the strength of the global economy and the health of the international banking system.

"It seems like a lot of the bad news is kind of being ignored," said Jennifer Radman, a portfolio manager at Caldwell Investment Ltd.

"I think a lot of people are looking for a pullback, and it would actually be maybe more of a relief if the market stopped for a bit and then resumed from there."

Before markets opened, the Bank of Canada predicted the economy would contract a deeper than expected three percent this year, as it cut its benchmark interest rate to 0.25 percent and said the rate would stay in place for the next year.

Ms Radman said the move likely had no impact on the stock market.

Among individual movers, Teck Cominco leapt 36.9 percent to C$12.47 after the miner said its lenders had agreed to defer US$4.4 billion in debt payments due in 2009, giving it breathing room in its attempt to pay down debt from its purchase of Fording Canadian Coal Trust.