(Updated at 10:18 a.m. ET/ 1518 GMT)

By Nikhil Sharma and Ragini Mathur

Dec 9 (Reuters) - Canada's main stock index hit a record

high on Monday, led by mining stocks, while anticipation of an

interest rate cut by the Bank of Canada also lifted investor

sentiment.

The Toronto Stock Exchange's S&P/TSX composite index

was up 116.01 points, or 0.45%, at 25,807.81.

Canada's materials sector gained 3.8% with gold

climbing on China's central bank resuming bullion purchases and

optimism for a U.S. rate cut in December, while copper jumped

after Beijing pledged to boost its economy.

The energy sector gained 1.4% tracking oil prices

after top importer China commenced its first move toward a

"moderately loose" monetary policy since 2010.

Meanwhile, traders are betting the Bank of Canada will cut

the interest rate by half a percentage point on Wednesday, with

prospects of a jumbo rate cut soaring after data on Friday

showed Canada's jobless rate spiked to an 8-year high, excluding

the pandemic period.

"And I think either way, whether it's a good 25 or 50 basis

points, it will be a bit of a positive for the market," said

Michael Sprung, president at Sprung Investment Management.

The central bank has reduced rates by 125 bps since June in

light of concerns about slow growth despite inflation coming

within its target range of 2%.

BRP Inc ( DOOO ) gained 4% as the power sports products

company extended its gains from Friday, helping the consumer

discretionary sector add 1.6%.

TSX is up 23.2% for the year, and with 2024 coming to an

end, analysts are seeing another positive run next year.

"I think investors are literally a little overly optimistic

that this could continue for a longer period of time," Sprung

added, while noting that the index has had two powerful years.

Across the border, the S&P 500 and the Nasdaq

were slightly lower on Monday as investors awaited a key

inflation report this week.