(Updates with market opening prices)

By Ragini Mathur

Jan 6 (Reuters) - Canada's main index edged higher on

Monday, powered by gains in energy and tech stocks, while

investors braced for political changes after Prime Minister

Justin Trudeau said he would resign as the Liberal party leader.

The S&P/TSX composite index edged up 0.1% at

25,100.03 points.

"The announcement is clearly going to trigger a contest to

replace him as prime minister, and this is viewed as positive in

the stock market. The change in government could usher in a

policy agenda that stimulates economic growth," said Ian Chong,

portfolio manager at First Avenue Investment Counsel.

Global stocks also received a lift after a Washington Post

report said U.S. President Donald Trump's aides were considering

tariffs targeting only critical imports from all countries,

focusing on sectors crucial for national or economic security.

Trump later denied the report, saying it incorrectly stated

his tariff policy would be pared back.

"The more we get to the idea that the U.S. President's

administration is going to be more reasonable when it comes to

the free exchange of goods and services, the better that's going

to be viewed by the markets," said Daniel Nowlan, managing

director of equity capital markets at the National Bank of

Canada.

Trump has threatened to impose 25% tariffs on all Canadian

imports. Canada sends about 75% of its exports to the United

States.

An S&P Global survey showed Canada's services economy

deteriorated for the first time in three months in December as a

postal workers' strike weighed on activity and work outstanding

tumbled.

Among sectors, energy stocks rose about 1.6% as

oil prices traded at their highest since mid-October as colder

weather spurred buying.

Tech stocks added 0.7%. Gold mining shares

lost the most, as prices of the precious metal dipped

on high U.S. Treasury yields.