Wall Street extends gains on energy, materials

NEW YORK (Reuters) - Stocks rallied on Wednesday as share prices at 12-year lows lured investors to break a five-day sell-off and a jump in prices of oil and other commodities boosted energy and natural resource companies.

* Investor optimism was also bolstered by news that China will increase spending in areas such as infrastructure and manufacturing under a second stimulus package. Data suggested that China's economy may also be on the brink of a recovery.

* Dow component Caterpillar Inc , a big exporter to China and a major seller of equipment to the mining industry, jumped 15 percent to $25.86. Also lifting the blue-chip index was IBM , up 3.8 percent to $91.06 and energy company Chevron , which rose 4.2 percent to $60.17.

(Editing by James Dalgleish)