TORONTO - The Toronto stock market closed slightly higher Tuesday to add to the solid gains of the previous session.

Higher mining stocks helped take the S&P/TSX composite index up 21.18 points to 11,888.08 a day after strong manufacturing data from the United States and China lifted the main index 121 points.

The Canadian dollar climbed 0.23 of a cent to 96.25 cents US, its highest level since mid-October, as the U.S. currency weakened for a second day. The loonie ran ahead 0.87 of a cent on Monday after comments by U.S. Federal Reserve chairman Ben Bernanke pushed the expectations for interest rate hikes further out into 2010.

The base metals sector was ahead 1.52 per cent despite the March copper contract in New York being off three quarters of a cent at US$3.41 a pound.

Teck Resources (TSX:TCK.B) gained 99 cents to $40 as it said that a major expansion at the Antamina mine in Peru will increase production of copper and zinc by nearly a third. Teck owns a 22.5 per cent interest in Compania Minera Antamina, the Peruvian joint venture which operates the open pit mine and is owned by some of the world's biggest mining companies.

The gold sector gained 0.56 per cent as the February bullion contract in New York rose 40 cents to US$1,118.70 an ounce. Barrick Gold Corp. (TSX:ABX) advanced 40 cents to $42.48.

The market also found strong support from potash producers after Credit Suisse raised Potash Corp. (TSX:POT) to outperform. It said the company along with Uralkali of Russia will lead a rebound among suppliers of the crop nutrient and believes sales volumes in the industry could double this year. Potash shares ran up $6.31 to $123, while shares in rival Agrium Inc. (TSX:AGU) advanced $2.01 to $67.55.

Oil prices lost some ground after the weak American currency helped push oil past the US$80 a barrel level for the first time since early November.

The February crude contract on the New York Mercantile Exchange was up 26 cents to US$81.77 after surging more than $2 on Monday and the energy sector was up slightly.

In the oilpatch, Noble Energy, Inc. (NYSE:NBL) will pay US$494 million to acquire the Rockies upstream assets of Petro-Canada Resources (USA) Inc. and Suncor Energy (Natural Gas) America Inc. (TSX:SU). The transaction is expected to close in the first quarter and Suncor shares rose 43 cents to $38.73.

The tech sector stepped back almost one per cent with Celestica Inc. (TSX:CLS) down 32 cents to $9.95.

The financial sector was weak as Scotiabank (TSX:BNS) lost 71 cents to $48.22.

In Canadian economic news Tuesday, the industrial product price index increased one per cent in November, while the raw materials price index rose 2.2, mainly due to higher prices for petroleum and metals. Statistics Canada reported that the rebound in the industrial index was the strongest since June 2008.

The TSX Venture Exchange moved ahead 7.75 points to 1,551.68.

New York markets were weak after racking up sharp gains on Monday as investors took in some mixed economic data.

Orders to U.S. factories posted a surprisingly big gain of 1.1 per cent in November, reflecting strong demand in a number of industries from steel and industrial machinery to computers and chemicals. The advance was double what had been expected and provided further evidence that manufacturers are beginning to pull out of their steep slump.

But the number of buyers who agreed to purchase previously occupied homes fell sharply in November. The National Association of Realtors says its seasonally adjusted index of sales agreements fell 16 per cent from October to a November reading of 96. The drop was far larger than the two per cent decline that economists expected. It was also the first decline following nine straight months of gains and the lowest reading since June.

The Dow Jones industrial average fell 11.94 points to 10,572.02, the Nasdaq composite index moved 0.29 of a point higher to 2,308.71 while the S&P 500 index gained 3.53 points to 1,136.52.

Investors are also looking to key employment data coming out of Canada and in particular the U.S. at the end or the week. Hopes are high that a long string of severe job losses has come to an end -- and that such a message would raise consumer confidence.

"I think it's going to be flat and flat is going to be very bullish," said Don Reed, president and CEO of Franklin Templeton Investments Corp.

"We really need to see the consumer to get out there and start spending (and) we have to see some jobs created. And if we see a small amount of creation, something small is going to probably get the consumer more oriented towards spending."

In other corporate news, Ford Motor Co. said its December sales jumped 33 per cent because of demand for midsize cars like the Ford Fusion, whose sales rose 83 per cent. Ford also had its first full-year gain in U.S. market share since 1995. Shares jumped 68 cents, or 6.6 per cent, to $10.96.

U.S. regional carrier Mesa Air Group Inc. filed for bankruptcy. In its filing in U.S. Bankruptcy Court in New York, Mesa listed $975.5 million in assets and $868.6 million in debts, including US$133 million owed to Canadian aircraft maker Bombardier (TSX:BBD.B). That makes the Montreal-based company the second-largest creditor after Wells Fargo Bank. Its shares were off two cents at $4.85.