Nov. 4 (Bloomberg) -- Canadian stocks gained the most in a week, joining a global equity rally as commodity and finance shares advanced after oil and metals prices rose, borrowing costs eased and the U.S. selected its new president.

Canadian Natural Resources Ltd. added 9 percent, pacing the advance in energy producers, and Barrick Gold Corp. climbed 10 percent, leading gains among mining companies. Bank of Nova Scotia rose the first time in three days. Magna International Inc. slid after posting a loss and cutting the dividend in half.

``There's no bad news -- every day without bad news is good news,'' said Thomas Caldwell, chairman of Toronto-based Caldwell Securities Ltd., which manages more than C$1 billion in Toronto. ``The financial system has been stabilized. Risk appetite is back, tentatively.''

The Standard & Poor's/TSX Composite Index rose 4.1 percent to 10,116.58 in Toronto, the most since Oct. 28. The S&P/TSX, which derives three-quarters of its value from energy, mining and finance shares, slid 17 percent last month as prices of oil and other raw materials slumped on expectations that the global credit crunch and slower economic growth will cut demand for commodities.

Oil futures rose 10 percent to $70.53 a barrel in New York, the most in six weeks, as the U.S. dollar dropped against the euro, increasing the appeal of commodities. Gold gained 4.2 percent to $757.30 an ounce. Copper, corn and cotton gained.

Energy Surge

Canadian Natural, the country's third-biggest energy company by market value, advanced 9 percent to C$62.70. Suncor Energy Inc., the second-largest oil-sands mining company in the world, rose 6.1 percent to C$28.82. EnCana Corp., Canada's biggest energy company, climbed 3.9 percent to C$60.75.

Talisman Energy Inc. jumped 8.4 percent to C$12.64. The oil and gas producer said third-quarter profit more than quadrupled on record crude-oil prices and a gain on commodities contracts.

Barrick Gold, the world's biggest bullion mining company, gained 10 percent to C$28.97. Goldcorp Inc. advanced 14 percent to C$25.22. New Gold Inc. surged 58 percent to C$2.30. The company building a gold mine in British Columbia, has still lost 55 percent of its value this year after lending froze and bullion prices plunged.

`` There's an awful lot of money on the sidelines and some people are out bargain hunting,'' Caldwell said in a phone interview. ``The commodities have come down a lot.''

Agrium Inc. added 2.9 percent to C$46. North America's third-largest fertilizer company was raised to ``buy'' from ``hold'' by Citigroup Inc. analyst Brian Yu, who also upgraded rivals CF Industries Holdings Inc. and Terra Industries Inc.

`Buy' Affirmed

Potash Corp. of Saskatchewan Inc., the biggest maker of crop nutrients, rose 7.6 percent to C$108.07. Yu, based in New York, affirmed his buy rating on the stock.

The cost of borrowing U.S. dollars for one month in London fell to the lowest level in almost four years, a sign the lending freeze may be ending after central banks cut interest rates and injected as much $3 trillion into the banking system.

Scotiabank, Canada's third-largest lender, climbed 3.6 percent to C$40.42. Royal Bank of Canada, the nation's biggest bank, rose 2.2 percent to C$47.60. Sun Life Financial Inc., Canada's third-biggest insurance company, gained 5.8 percent to C$31.20.

Magna International fell 3.6 percent to C$39.52. North America's largest auto-parts maker reported a third-quarter loss of $215 million and lowered the dividend to 18 cents, after U.S. sales declined and on assets writedowns.

Election Day Rally

U.S. stocks rose in the biggest presidential Election Day rally in 24 years, led by energy and banking shares, on rebounding commodity prices and speculation the Treasury will bail out more financial companies. Nominee Barack Obama, who leads in national polls, and Republican John McCain are competing to become U.S. president amid the biggest financial crisis since the Great Depression.

``We can still have a recession in the real economy -- we're not out of the woods yet,'' Caldwell said. ``I'm not sure it really matters that much who gets in. Everybody wants a change.''

European stocks advanced for a sixth day, led by banks and insurers. Asian shares climbed after lending costs fell the most in almost a decade in Japan and Australia cut interest rates.

To contact the reporter on this story: John Kipphoff in Montreal at jkipphoff@bloomberg.net.

Last Updated: November 4, 2008 17:24 EST