TORONTO (Reuters) - Toronto's main stock index notched its eighth straight session in the black Friday as a stronger than expected US employment report eased fears about a sputtering recovery.

Toronto followed US equities higher after data showed US non-farm employment fell less than forecast in August, while private payrolls growth was higher than expected. Financials, often a play on the health of the economy, led eight of the TSX's 10 main groups higher with an 1.3 percent advance. Toronto-Dominion Bank rose 1.7 percent to C$74.40, while Royal Bank of Canada climbed 1 percent to C$52.80. Insurer Manulife surged 2.9 percent to C$13.23.

"Jobs numbers in the United States were better than expected. Not great, but still better," said Aaron Fennell, senior market strategist at Lind-Waldock Canada. "I think that implies to the market that the recovery is a little bit stronger than otherwise thought."

The Toronto Stock Exchange's S&P/TSX composite index finished the session up 33.83 points, or 0.28 percent, at 12,144.92, near its day's peak of 12,197.89.

The index rose two percent on the week, its strongest showing since early July.

Gold prices edged lower as the US jobs data undermined gold's safe-haven attraction.

The global gold subsector of the TSX dropped nearly one percent, weighing on the broader resource-laden materials sector, which fell 0.7 percent. Barrick Gold was off 1.1 percent at C$47.09.

Goldcorp sank 3.7 percent at C$44.49, also pressured by news it intends to buy Argentina-focused gold miner Andean Resources Ltd for C$3.6 billion, trumping a competing offer from Eldorado Gold Corp.

Andean Resources, the top net gainer on the market, soared 45 percent to C$6.98, while Eldorado fell 3 percent to C$19.89.