TORONTO (Reuters) — The Toronto Stock Exchange's main index jumped more than 4 percent yesterday, recouping more than half of the previous day's heavy losses as energy stocks got a boost from crude oil's recovery, while hopes for a revived Wall Street bailout plan calmed investor nerves.

Following a near 7 percent tumble Monday after US lawmakers rejected a proposed $700 billion bailout for the financial sector, the recovery spanned all 10 TSX subgroups, led by a 5.8 percent surge in energy stocks and a 5.4 percent rise in financial issues.

"Optimism springs eternal I guess, and (the vote) was pretty close. People probably feel that the next time around it will pass simply because the reasons to vote against it were pretty weak," said John Kinsey, a portfolio manager at Caldwell Securities.

The S&P/TSX composite index rose 467.83 points, or 4.15 percent, to close at 11,752.90.

Expectations that lawmakers will revisit the bailout plan drove oil up more than $4 a barrel to above the key $100 level, boosting companies such as Canadian Natural Resources, which rose 11.8 percent to C$73, and Nexen Inc, which gained 10.3 percent to C$24.70.

Among financials, Bank of Montreal led the way, rising 9.4 percent to C$45.95, while Canadian Imperial Bank of Commerce jumped 7.4 percent to C$61.08.

Kinsey said some of the bounce could be attributed to bargain hunters rushing in for quality stocks, and also to buying associated with fund managers rebalancing their portfolios ahead of the end of the quarter.