* TSX ends up 0.7% at 34,758.57

* Technology adds 4.7%

* Canada's economy contracts in the first quarter

(Adds details after market close)

By Niket Nishant and Fergal Smith

May 29 (Reuters) - Canada's main stock index edged

higher on Friday, adding to its monthly gain, as the prospect of

an extended ceasefire in the Middle East buoyed investor

sentiment, with technology and gold mining shares among the

biggest gainers.

The Toronto Stock Exchange's S&P/TSX Composite Index

ended up 240.87 points, or 0.7%, at 34,758.57. For the month,

the index was up 2.4%, marking its second straight month of

gains.

* Major Wall Street indexes extended their record run as

Dell results drove tech shares higher, while investors awaited

details on a potential U.S.-Iran deal.

* U.S. President Donald Trump said he would make a final

decision on Friday over a deal with Iran to extend their

ceasefire that would need to include opening the Strait of

Hormuz and dismantling Tehran's capacity to make a nuclear

weapon.

* Canada's economy posted a surprise contraction in the

first quarter, making it two straight quarters of annualized

decline as the country struggles with U.S. tariff uncertainty

and reducing expectations for Bank of Canada interest rate hikes

this year.

* "Overall, this was a very weak report from most angles

that shows that trade uncertainty and tariffs are continuing to

hold back growth, while consumers have little ammunition left

for spending ahead," said Katherine Judge, senior economist at

CIBC Capital Markets.

* The Trump administration wants to increase the level of

regional content in North American-built vehicles to 82% to

qualify for preferential treatment under the U.S.-Mexico-Canada

Agreement on trade, with 50% of that value produced in the

United States, four people familiar with the U.S. negotiating

position said.

* Technology gained 4.7%, with shares of

electronic equipment firm Celestica Inc ( CLS ) ending 10.2%

higher.

* The materials group, which includes metal

mining shares, was up 2.6% as gold prices climbed.

* Energy was a drag, falling 1.2%. The price of

oil settled 1.3% lower at $87.72 a barrel.