Canada's main stock index, which had fallen for five straight days, rose on Monday after Hurricane Irma weakened and North Korea refrained from conducting a missile test, with financial shares and Tahoe Resources leading the rally.

Gains for the Toronto market came as the S&P 500 posted a record high close.

Irma caused less damage than expected in Florida, while geopolitical tensions eased after North Korea did not test-fire missiles over the weekend, which some had feared.

"There is a clear risk-on tilt to the market today," said Ian Scott, equity analyst at Manulife Asset Management.

The financials group rose 0.7 per cent as global bond yields, which had been weighed over recent weeks by safe-haven demand, rebounded.

Canada's 10-year yield, which had bucked the global trend last week by climbing as the Bank of Canada raised interest rates, touched its highest intraday since July 31 at 2.042 per cent.

Higher bond yields reduce the value of insurance companies' liabilities and increase net interest margins of banks.

Manulife Financial Corp (MFC.TO) rose 1.3 per cent to $23.94, while Royal Bank of Canada (RY.TO), Canada's biggest bank by market capitalization, advanced 0.6 per cent to $91.06.

Gains for bank stocks were more moderate than those for life insurance companies due to worries that a slowdown in the housing market will hold back loan growth, Scott said.

Tahoe Resources (THO.TO) surged 33.7 per cent to $7.61 after a Guatemalan court reinstated the company's license at its Juan Bosco and El Escobal mines.

The Toronto Stock Exchange's S&P/TSX composite index closed up 54.98 points, or 0.37 per cent, at 15,040.30.

Energy shares rose 0.8 per cent as oil prices climbed.

U.S. crude oil prices settled 1.2 per cent higher at US$48.07 a barrel as U.S. refinery restarts and Saudi cut extension talks offset Hurricane Irma-related demand fears.

Just two of the index's 10 main groups ended lower.

The materials group, which includes precious and base metals miners and fertilizer companies, lost 0.9 per cent.

Fertilizer producer Potash Corporation of Saskatchewan Inc (POT.TO) gained 2.8 per cent to $22.17. But lower gold prices weighed on mining shares.

Alamos Gold Inc (AGI.TO) tumbled 16.1 per cent to $8.60 after the company said it will buy smaller rival Richmont Mines (RIC.TO) in an all-stock deal valued at about $905 million.

Eldorado Gold Corp (ELD.TO) slumped 6.0 per cent to $2.34 after the company said it was suspending its Greek mining investment, citing regulatory hurdles.

Gold futures fell 1.4 per cent to US$1,327.30 an ounce.