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TSX up 0.5%

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Technology shares lead gains

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March unemployment rate hits 6.1%

(Updated at 10:18 a.m. ET/ 1418 GMT)

By Purvi Agarwal

April 5 (Reuters) - Canada's main stock index rose on

Friday, boosted by technology stocks as softer employment

numbers bolstered hopes of a June rate cut by the Bank of

Canada, while investors also assessed a hot jobs data report in

the United States.

At 10:18 a.m. ET (14:18 GMT), the Toronto Stock Exchange's

S&P/TSX composite index was up 113.36 points, or

0.51%, at 22,165.15.

Rate-sensitive technology stocks led gains on the

index with a 1.3% rise.

Ten of eleven sectors traded in the green, while utilities

stocks were the only outliers amongst the broad rally

with a 0.5% decline.

On the data front, Canada's economy unexpectedly shed a net

2,200 jobs in March, while the jobless rate increased to a new

26-month high of 6.1%, data showed on Friday, raising bets of an

interest rate cut in June by the Bank of Canada.

The dataset was the last major report before the central

bank's monetary policy decision, which is expected next week.

The BoC will cut its key interest rate in June, a strong

majority of economists in a Reuters poll said.

"The jobs numbers in Canada will probably lead to a quicker

round of cuts in Canada than in the U.S.", said Daniel Nowlan,

managing director and vice chairman of Equity Capital Markets

Group at the National Bank of Canada.

On the flip side, U.S. job growth beat expectations in

March, suggesting a solid economy in the first and potentially

delayed anticipated interest rate cuts from the Federal Reserve

this year.

"(U.S job data) has changed the views as to when rate cuts

would be coming, because it seems like all bets are off for rate

cuts in June and July and everything's focused on September

now," Nowlan added.

Among Canadian corporate news, Laurentian Bank of Canada ( LRCDF )

rose marginally after it entered an agreement to sell

assets of its retail investor broker division.