TORONTO (Bloomberg) - Canadian stocks rose the most in seven weeks after central banks led by the US Federal Reserve announced plans to inject as much as $245 billion of cash into markets to encourage bank lending and boost the economy.

Potash Corp. of Saskatchewan Inc. and Suncor Energy Inc. paced gains among raw-materials and energy producers as crude oil rose to a record and metals and grain prices advanced. Toronto-Dominion Bank and Research In Motion Ltd. led financial and technology companies higher.

The US Federal Reserve said it plans to make up to $200 billion in loans in exchange for private mortgage-backed securities and other debt that has plunged in value as homeowners defaulted on their loan payments. The Bank of Canada said it will purchase C$4 billion ($4 billion) of securities for 28 days, while European central banks will offer about $41 billion.

"This gives short-term hope to investors," said Michael Smedley, who helps manage about $1.2 billion at Morgan Meighen & Associates in Toronto. "It's the sort of gesture that central banks and authorities feel bound to make. It's not the long-term solution."

The Standard & Poor's/TSX Composite Index jumped 339.44, or 2.6 percent, to 13,344.53 in Toronto, the biggest gain since January 22. The benchmark has fallen 3.5 percent this year on concern that mounting losses tied to sub-prime mortgages are causing banks to curb lending, hurting economic growth, demand for Canadian exports and corporate profits.

Commercial banks around the world have recorded about $188 billion in writedowns and credit losses stemming from the collapse of the US sub-prime mortgage market.

Potash Corp. gained the most in more than nine years, adding 8.7 percent to C$155. The world's largest maker of crop nutrients had its share-price target increased to $211 (C$209.27) from $175 by UBS AG. A team of analysts led by Joe Dewhurst in London and Brian MacArthur in Toronto increased its estimates for potash and phosphate prices and revised its earnings forecasts for Potash and a number fertiliser companies.

Rival Agrium Inc., which had its share-price forecast raised to C$86.60 from C$79.64 at UBS, climbed C$6.06, or 9.3 percent, to C$71.06, the most since January 6, 2000. UBS left its recommendations for Potash and Agrium unchanged at "buy".

Goldcorp Inc., the world's biggest bullion producer, added C$2, or 4.9 percent, to C$42.81. Larger rival Barrick Gold Corp. climbed C$1.19 to C$50.19.

Suncor Energy Inc., the second-biggest tar-sands miner, rose C$3.48 to C$106.96. Canadian Oil Sands Trust, which yesterday increased its estimate of potential crude reserves by 41 percent, added C$1.35, or 3.2 percent, to C$43.30.