TORONTO (Reuters) - Banks powered Toronto's main stock index higher yesterday, encouraged by forecast-beating results from US bank JP Morgan, while upbeat US economic data and firmer commodity prices played supporting roles in the rise.

The index's financial group led the charge, up 2.03 percent, with all five big banks scoring gains of two percent or more as investors anticipated results similar to JPMorgan's at other US banks, a good omen for Canadian bank results.

Royal Bank of Canada, the country's biggest lender, shot up 2.99 percent to C$61.31 and Toronto-Dominion Bank added 2.71 percent to C$76.64.

Canadian Imperial Bank of Commerce gained 2.38 percent to C$74.74, while Bank of Montreal rose 2.64 percent C$63. Bank of Nova Scotia was up second percent.

Sentiment was further lifted by stronger March retail sales in the US and by better than expected results from tech heavyweight Intel from Tuesday's closing bell. "It's a spillover from JP Morgan and the US They seem to be driving some of our stocks today. More good news is coming from the commodities side in the energy and the gold," said John Kinsey, portfolio manager at Caldwell Securities Ltd.

The Toronto Stock Exchange's S&P/TSX composite index closed up 102.89 points, or 0.85 percent, at 12,204.41, not far from its session high at 12,211.57.

Seven of the index's 10 main sectors were higher, including the energy and materials groups, which rose as the price of oil turned higher after US government oil inventory data unexpectedly showed a drawdown. Gold prices also rose.

On the downside, fertiliser producers put pressure on the materials group after Potash Corp. was downgraded by Goldman Sachs.

Potash Corp., the world's biggest producer of the crop nutrient potash, dropped 2.4 percent to close at C$109.61 after falling as much as four percent earlier in the day.

At one point in the morning, weakness in fertiliser stocks dragged the index briefly into negative territory.