TORONTO - The Toronto stock market was sharply higher Monday amid rising commodity prices and major dealmaking in the mining sector.

The S&P/TSX composite index jumped 112.99 points to 14,243.14 while the TSX Venture Exchange climbed 26.76 points to 2,325.16.

The Canadian dollar was down 0.21 of a cent to 103.48 cents US.

China's Minmetals Resources Ltd. is launching a C$6.3 billion hostile bid for Toronto-based miner Equinox Minerals (TSX:EQN). Minmetals said it will offer $7 per share, which represents a 23 per cent premium to the closing price of Equinox shares on the Toronto Stock Exchange on Friday. However, investors thought that offer could be improved as the stock surged $1.74 or 30.4 per cent to $7.45.

Minmetals also urged Equinox shareholders to reject the miner's bid for fellow Canadian miner Lundin Mining (TSX:LUN). Lundin shares were down 33 cents to $8.

Equinox's main asset is the Lumwana copper mine in Zambia, one of the largest new copper mines to be developed globally over the last few years.

The bid for Equinox and higher metal prices pushed the base metals sector up 4.45 per cent with Teck Resources (TSX:TCK.B) ahead $1.59 to $52.84 while HudBay Minerals (TSX:HBM) rose 50 cents to $16.64.

The May copper contract in New York rose three cents to US$4.29 a pound.

The energy sector was up 0.57 per cent amid volatile oil prices with the May crude contract on the New York Mercantile Exchange down 17 cents to US$107.77 a barrel. Crude earlier rose to a fresh two-and-a-half year high of US$108.78, pushed upward by signs that a stronger U.S. economy would strengthen demand for oil, while continuing unrest in some oil-producing countries could disrupt supplies.

Suncor Energy (TSX:SU) gained 34 cents to $43.95.

Gold prices were higher as the June bullion contract on the Nymex rose $8.10 to US$1,437 an ounce. The gold sector rose almost one per cent with Barrick Gold Corp. (TSX:ABX) ahead 79 cents to $50.22.

In other M&A activity, New Gold Inc. (TSX:NGD) and Richfield Ventures Corp. (TSXV:RVC) have agreed to a $550-million friendly share-swap deal. New Gold will acquire Richfield and its Blackwater project in central B.C. by issuing stock worth about $10.38 per share. New Gold shares lost 31 cents to $10.95 while Richfield shares surged $2.11 or 26.36 per cent to $10.04.

The financial sector also supported the TSX with TD Bank (TSX:TD) ahead 74 cents to $86.64.

The U.S. Labour Department said Friday its economy added 216,000 new jobs last month and the unemployment rate dropped to 8.8 per cent, boosting trader confidence that more workers will help fuel consumer spending.

The report helped push the TSX up 0.64 per cent last week while the Dow industrials climbed 1.27 per cent during the week.

New York's Dow Jones industrial average was up 26.04 points to 12,402.76 Monday morning.

The Nasdaq composite index gained 6.46 points to 2,796.06 while the S&P 500 index climbed 3.39 points to 1,335.8.

Elsewhere on the corporate front, Ithaca Energy Inc. of Calgary (TSXV:IAE) has a deal to acquire minority interests in two North Sea oil fields in return for US$74.5 million plus 10 per cent interests in three exploration blocks, also in the North Sea. Its shares rose seven cents to $2.64.

BP announced Monday it is selling its Arco Aluminum subsidiary to a Japanese consortium for US$680 million, but declined to comment on reports that it is about to restart drilling in the Gulf of Mexico. The British company is selling Arco, a supplier of rolled aluminum sheet used mainly in the production of drink cans, as part of its drive to dispose of $30 billion in non-core assets by the end of this year.

Pfizer Inc. said it will sell its Capsugel capsule-making business to private equity firm Kohlberg Kravis Robert & Co. for US$2.38 billion in cash. In October, Pfizer said it would review options for Capsugel and might sell the company. Pfizer says it will use the proceeds of the sale to buy back additional stock.

In overseas trading, Tokyo's benchmark Nikkei 225 index eked out a gain of 0.1 per cent, shrugging off a Bank of Japan report that business confidence among major manufacturers had fallen following last month's catastrophic earthquake. The disaster unleashed a tsunami that killed up to 25,000 people and caused $300 billion in damage.

The crisis drawing the most attention was unfolding at the heavily damaged Fukushima Dai-ichi nuclear complex along the northeastern coast, where officials were three weeks into a still-unsuccessful mission to contain a menacing radiation leak caused by the tsunami.

The damage forced the plant to cut its daily power supply in Tokyo and surrounding areas, causing many factories to suspend or limit operations. Still other companies have limited or stopped production because of disruptions in supply chains.

Hong Kong's Hang Seng index gained 1.5 per cent, Australia's S&P/ASX 200 rose 0.5 per cent while South Korea's Kospi fell 0.2 per cent.

London's FTSE 100 index climbed 0.37 per cent, Frankfurt's DAX added 0.15 per cent while the Paris CAC 40 index was off 0.14 per cent.