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TSX ends up 0.7% at 25,532.18

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Posts highest close since February 19

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Tech adds 5.5% with Shopify ( SHOP ) jumping 14.1%

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Energy gains 3% as oil settles 1.5% higher

By Sukriti Gupta and Fergal Smith

May 12 (Reuters) - Canada's main stock index rose to a

near three-month high on Monday as the United States and China

reached a deal to reduce tariffs, raising optimism that an

all-out trade war disrupting the global economy can be avoided.

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

ended up 174.44 points, or 0.7%, at 25,532.18, its

highest closing level since February 19.

U.S. stocks posted sharper gains, clawing back some recent

underperformance against the Toronto market.

The TSX has been shielded in a turbulent period for markets

by its cheaper valuation compared to Wall Street and a heavy

weighting in gold-mining shares, say analysts.

"Canadian markets can benefit from the big easing in trade

tensions (as) it shows that the tariff war may be able to get

resolved more quickly than people had previously thought", said

Colin Cieszynski, chief market strategist at SIA Wealth

Management.

The technology sector gained 5.5% as shares of e-commerce

company Shopify Inc ( SHOP ) 14.1%.

The price of oil settled 1.5% higher at $61.95 a

barrel, boosting energy which added 3%.

Consumer discretionary was up 2.4% as shares of apparel

retailer Aritzia Inc ( ATZAF ) and auto parts company Magna

International Inc ( MGA ) jumped.

Some of gold's safe-haven attraction faded which

weighed on the materials group. The group was down 4.9%.

Shares of Pan American Silver Corp ( PAAS ) tumbled 15.9%

after a deal to acquire MAG Silver Corp. ( MAG ) MAG Silver ( MAG )

shares gained 5.5%.

Hudbay Minerals Inc ( HBM ) shares jumped nearly 9% after

the miner's first-quarter results beat estimates.