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TSX ends up 0.5%, at 25,419.45

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Tech rebounds, with Shopify ( SHOP ) up 9.6%

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Energy sector falls 1%

(Updates at market close)

By Fergal Smith

Jan 28 (Reuters) - Canada's main stock index rose on

Tuesday as Shopify ( SHOP ) led a rally in technology shares, recouping

the previous day's sharp declines, and investors turned their

attention to an expected interest rate cut by the Bank of

Canada.

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

ended up 130.30 points, or 0.5%, at 25,419.45, after

posting on Monday its first daily decline in two weeks.

"Markets are responding to a rebound from yesterday's

correction that was spurred by developments in the AI arena,"

said Victor Kuntzevitsky, a portfolio manager at

Wellington-Altus Private Counsel.

Wall Street's main indexes also rose as AI-linked shares

rallied after sharp losses on Monday.

"All eyes now are on tomorrow, on the Bank of Canada, where

they are expected to announce a 25-basis-point cut,"

Kuntzevitsky said. "This move will aim to mitigate a potential

economic downturn from the proposed U.S. tariffs and ease the

burden of Canadian households with variable rate mortgages."

U.S. President Donald Trump still plans to make good on his

promise to impose tariffs on Canada and Mexico on Saturday,

White House spokesperson Karoline Leavitt told reporters.

The TSX stands to benefit from the expected election this

year of a Conservative government that favors business-friendly

economic policies and could help reduce trade uncertainty with

the United States, some investors say.

The Toronto market's technology sector jumped 4.4% after

falling 3.4% on Monday. Electronics firm Celestica ( CLS ) was

up 8.2% after leading Monday's selloff with a decline of 28%.

E-commerce firm Shopify ( SHOP ) added 9.6%.

Heavily weighted financials rose 0.3% but the energy group

was a drag, falling 1%. The price of oil settled 0.8% higher at

$73.77 a barrel after hitting a multi-week low on Monday.

The materials group ended up 0.1% as higher gold prices

boosted gold mining shares, offsetting declines for

copper, steel and forest product producers.