CANADA STOCKS-TSX touches six-week high as China optimism boosts materials sector

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Miners lead gains on China optimism

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Canada home sales fall in August

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TSX up 0.2%

By Khushi Singh

Sept 15 (Reuters) - Canada's main stock index touched a more than six-week high on Friday after upbeat economic data from China spurred gains in prices of most commodities, lifting the materials sector.

At 10:47 a.m. ET (1447 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 48.85 points, or 0.24%, at 20,616.69.

The materials sector, which includes miners and fertilizer companies, climbed 1.8% to hit over a two-week high as metals prices rose after top metals consumer China showed signs of a stabilizing economy.

Upbeat data from China's factory output and retail sales in August bolstered market sentiment, as it suggested that a spate of recent measures to shore up the world's second-largest economy were starting to bear fruit.

"While the numbers today are pleasing from the perspective of risk appetite, investors will probably want to see a trend of better data start to develop before being lured back into Chinese assets with any conviction," Tim Waterer, chief market analyst at KCM Trade, said.

Gold futures rose 0.7% as the yellow metal recovered from three-week lows, aided by the dollar's retreat on the back of better-than-expected Chinese data and a stronger euro.

Copper prices also made gains and were on track for their biggest weekly growth since late July.

Tilray Brands added 2.0% after Entourage Health Corp amended its supply agreement with Hexo Corp and will now source bulk cannabis from Tilray following its acquisition of Hexo.

The real estate index led sectoral declines, losing 1.1% after data showed Canadian home sales fell in August, the first full month of data since the Bank of Canada's latest interest rate hike.

Meanwhile, on Thursday, Canada's Prime Minister Justin Trudeau said he had summoned the country's top grocers to help solve the surging food prices and vowed to cut federal taxes on new rental buildings as consumers battle high prices. (Reporting by Khushi Singh in Bengaluru; Editing by Tasim Zahid)