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TSX ends up 0.5% at 25,051.68

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Technology rises 1.8%

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Materials group adds 1.7%

(Adds analyst quotes and details on activity in paragraphs 1-5)

By Fergal Smith

Jan 8 (Reuters) - Canada's main stock index ended higher

on Wednesday, led by gains for technology and metal mining

shares, as investors set aside recent caution that has been

driven in part by rising prospects of U.S. trade tariffs.

The S&P/TSX composite index ended up 121.79

points, or 0.5%, at 25,051.68, after two straight days of

declines.

It outperformed major U.S. indices which tend to have a

higher weighting in high-flying technology companies.

"It's encouraging for Canada because sentiment towards

Canada has been cautious to say the least for quite some time,"

said Colin Cieszynski, chief market strategist at SIA Wealth

Management.

"It's nice to see that perhaps some of the pressure on

Canada might be starting to ease a bit."

A report said that U.S. President-elect Donald Trump is

considering declaring a national economic emergency to provide

legal justification for a series of universal tariffs on allies

and adversaries.

Previously, Trump has threatened to impose a 25% tariff on

imports from Canada.

The U.S. 10-year yield rose to its highest since April on

concerns that policies such as trade tariffs could reignite

inflation.

The Toronto market's technology sector rose 1.8%, clawing

back some of the previous day's sharp decline. Gains were led by

electronics firm Celestica Inc ( CLS ), which ended 4.6%

higher.

The materials group, which includes fertilizer companies and

metal mining shares, added 1.7% as gold and copper

prices rose.

Shares of gold producer K92 Mining ( KNTNF ) jumped nearly

16% after the company reported record quarterly production.

Heavily weighted financials added 0.6%, while energy ended

near flat as oil settled 1.25% lower at $73.32 a barrel, giving

back some of its recent gains.

U.S. crude oil imports from Canada rose last week to the

highest on record, data from the U.S. Energy Information

Administration showed, ahead of expected trade tariffs.