TORONTO (Reuters) - The Toronto Stock Exchange’s main index extended its recovery for a second straight session , ending sharply higher as materials and energy issues rose on firm commodity prices.The S&P/TSX composite index closed up 121.42 points, or 0.9 percent, at 12,989.61.

The benchmark index surged 1.2 percent Tuesday, bouncing back from a week-long selloff triggered by a nine percent dive in Chinese shares and further agitated by a rapid rise in the yen and the unwinding of carry trades.

“The market is stepping back to put the trading of last week in better perspective,” said Paul Taylor, chief investment officer at BMO Harris Investment Management Inc.

Overall, eight of the TSX index’s 10 main groups advanced.

Shares of mining companies jumped 1.6 percent on firmer commodity prices. Potash was up C$9.92, or 5.6 percent, at C$187.01, while Alcan climbed C$2.33, or 3.9 percent, to C$62.33.

Shares of oil and gas companies gained 1.5 percent as US crude prices rose more than two percent to $61.82 a barrel after weekly inventory data showed an unexpected drop in US stockpiles.

Suncor Energy gained C$1.33, or 1.6 percent, to C$82.22, while Talisman Energy rose 58 Canadian cents, or 3.1 percent, to C$19.46.

Shares of Canadian Natural Resources rose C$1.02, or 1.7 percent, to C$59.84 after it said profit fell 72 percent in the fourth quarter, but boosted its quarterly dividend by 13 percent to 8.5 Canadian cents a share.

The financial services sector also provided some buoyancy, rising 0.7 percent, with Bank of Nova Scotia up C$1.05, or 2.1 percent, at C$51.68.

The information technology and health care sectors saw some losses, sliding 0.7 percent and 0.2 percent respectively.

“It’s still the energy and the metals that are moving the index,” said Michel Tessier, an analyst at Laurentian Bank Securities in Montreal.

But he cautioned that “volatility will continue”, especially in terms of economic uncertainty in the United States. On Friday, investors will look to jobs data from both sides of the border for some direction.

Market volume was 416 million shares worth C$6.5 billion. Advancers outpaced decliners 976 to 608.