TORONTO (Bloomberg) — Canadian stocks climbed to a three- week high, after the Federal Reserve unexpectedly indicated it abandoned a bias in favour of raising borrowing costs in the US.The US central bank left interest rates unchanged and removed a reference from its statement to the possibility of “additional firming.”

Some investors read the change as a signal the Fed will consider reducing the key lending rate to stimulate the economy by its June meeting. Gains in Canada were led by financial and energy shares including Royal Bank of Canada and EnCana Corp.

“The Fed removing its tightening bias is good news for stocks,” said Pierre Lapointe, assistant market strategist at National Bank Financial in Montreal. “Historically, when the Fed eases one can see multiple expansion. Interest-rate sensitive stocks such as banks, financials should benefit the most.”

The Standard & Poor’s/TSX Composite Index, already up as much as 0.6 percent on higher crude oil prices and signs of an accelerating Canadian economy, surged after the Federal Open Market Committee’s statement. The benchmark rose 178.14, or 1.4 percent, to 13,155.55 in Toronto, the highest since a record close of 13,404.11 on Feb. 26.

A gauge of financial stocks climbed 1.3 percent. Measures of energy and raw-materials shares rose 1.7 percent and 1.6 percent, respectively.

Royal Bank, the nation’s biggest lender by assets, gained C$1 to C$58.20, a record. Toronto-Dominion Bank, the second-largest bank, added C$1.06 to C$70.12.

Bank of Montreal rose C$1.45 to C$71.28. Canada’s fourth- biggest largest lender by assets, has stopped using outside mortgage brokers and will instead expand its own sales force, Frank Techar, the head of consumer banking said in Montreal.