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TSX ends up 0.5% at 25,051.68

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Technology rises 1.8%

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Materials group adds 1.7%

(Updates at market close)

By Ragini Mathur and Fergal Smith

Jan 8 (Reuters) - Canada's main stock index edged higher

on Wednesday as technology and metal mining shares rose, but

gains were held in check as investors grew more concerned about

prospects for U.S. trade tariffs.

The S&P/TSX composite index ended up 121.79

points, or 0.5%, at 25,051.68, after two straight days of

declines.

U.S. President-elect Donald Trump is considering declaring a

national economic emergency to provide legal justification for a

series of universal tariffs on allies and adversaries, CNN

reported.

"There is quite a bit of caution in the markets with all the

policy uncertainty that we're facing," said Douglas Porter,

chief economist at BMO Capital Markets.

"Incoming President Trump is quite serious about imposing

tariffs on Canada in a meaningful fashion and that's clearly a

negative for the Canadian economy and could weigh pretty heavily

on the TSX."

The U.S. 10-year yield reached a more than eight-month high

on concerns that policies such as trade tariffs could reignite

inflation.

The Toronto market's technology sector rose 1.8%, clawing

back some of the previous day's sharp decline. Gains were led by

electronics firm Celestica Inc ( CLS ), which ended 4.6%

higher.

The materials group, which includes fertilizer companies and

metal mining shares, added 1.7% as gold and copper

prices rose.

Shares of gold producer K92 Mining ( KNTNF ) jumped nearly

16% after the company reported record quarterly production.

Heavily weighed financials added 0.6%, while energy ended

near flat as oil settled 1.25% lower at $73.32 a barrel, giving

back some of its recent gains.

U.S. crude oil imports from Canada rose last week to the

highest on record, data from the U.S. Energy Information

Administration showed, ahead of expected trade tariffs.