TORONTO (Reuters) - Toronto’s main stock index rose to its highest level in more than two years yesterday as financials got a boost from a strong start to bank earnings season, while concerns about euro zone debt eased.

The market was also lifted by better-than-expected economic data in China, Europe and the US, which whetted investors’ appetite for risk globally, boosting oil and metals prices.

Top advancers on the TSX index included Royal Bank of Canada up 2.4 percent at C$56.24, and Bank of Nova Scotia, which climbed 1.9 percent to C$54.22. Toronto-Dominion Bank gained 0.8 percent to C$75.29.

Financial shares were up 1.7 percent a day after National Bank of Canada reported a jump in quarterly profit and became the first major domestic bank to resume dividend hikes in the wake of the financial crisis. It raised its dividend a hefty 6.5 percent, spurring hopes that other banks will follow suit.

National Bank was up 2.9 percent at C$69.82.

On euro zone debt, European Commission President Jose Manuel Barroso said he had confidence the European Central Bank would take whatever action is needed to protect the stability of the euro.

Separately, a US official told Reuters that Washington would support boosting an EU rescue facility via IMF funds.

“It’s that concerted effort towards supporting Europe that set the tone for a strong rally,” said Francis Campeau, broker at MF Global Canada in Montreal.

The Toronto Stock Exchange’s S&P/TSX composite index ended up 195.47 points, or 1.51 percent, at 13,148.35, chalking up its biggest percentage gain since mid-November.

At one point the index touched 13,154.42, its loftiest level since September 8, 2008. All 10 of its sectors ended higher.

The blue chip S&P/TSX 60 index closed 11.59 points, or 1.56 percent, higher at 752.93.

Canadian Natural Resources shot up 4.5 percent to C$41.28, while Suncor Energy was up 2.9 percent at C$35.39.

Elsewhere, Rogers Communications was down 0.3 percent at C$36.19 after a media report said the company is in talks to buy a majority stake in sports conglomerate Maple Leaf Sports and Entertainment, which owns the NHL’s Maple Leafs and NBA’s Raptors.

Inmet Mining Corp., a top net gainer on the market, climbed 6.8 percent to C$66.15 after CIBC raised the company’s share-price target to C$88 from C$87, and rated it a sector outperformer.