(Updates with morning prices)

By Ragini Mathur

Oct 20 (Reuters) - Canada's main stock index rebounded

on Monday, with mining shares leading the gains, as investors

looked ahead to crucial economic reports and corporate earnings

throughout this week.

At 10:18 a.m. ET (1418 GMT), Toronto's S&P/TSX composite

index was down 0.9% at 30,373.66 points.

Gains were broad-based with 12 out of 13 sectors trading in

positive territory.

The materials group, which includes fertilizers

and metal mining companies, gained 2.2% as gold prices rose by

over 1%.

Information technology shares rose 0.5% while

heavyweight financials advanced 0.7%.

Consumer staples remained the only sector in

negative territory, down 0.5%.

Monday's economic data showed that producer prices in Canada

increased 0.8% in September from August, following a downwardly

revised 0.2% increase in August.

Investors are now awaiting consumer price index (CPI) data,

a more significant inflation indicator, from both Canada and the

United States, just days before policy rate announcements from

the central banks of both the countries on October 29.

Attention will also be on third-quarter earnings results,

following a strong start to the reporting season by major U.S.

companies.

Meanwhile, U.S. President Donald Trump's dovish comments on

China aided market optimism as he suggested easing tariffs if

Beijing resumes purchase of key agricultural purchases such as

soybeans.

The benchmark index finished last week with modest

gains, surrendering most of its earlier advances due to concerns

about systemic credit stress in the U.S. banking sector that

unsettled traders globally.

"After last week's volatility, Canadian equities are

starting strong, supported by robust corporate results from U.S.

and positive trade developments between U.S. and China," said

Angelo Kourkafas, senior global investment strategist at Edward

Jones.

"While near-term challenges persist, the limited market

pullback reflects investor optimism for 2026."

Among individual movers, Dye & Durham ( DYNDF ) tumbled

17.6% after Plantro, its second-largest investor, withdrew its

acquisition proposal for the legal software firm.