(Updates at market close)

* TSX ends up 0.7% at 34,077.76

* Posts highest closing level since April 20

* Mining stocks lead gains as gold rises

* Economy sheds jobs in April

By Fergal Smith

TORONTO, May 8 (Reuters) - Canada's main stock index

rose to a near three-week high on Friday as investors cheered

recent growth in corporate earnings, and after

weaker-than-expected domestic jobs data tempered expectations

for interest rate hikes.

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

ended up 221.14 points, or 0.7%, at 34,077.76, marking

its highest closing level since April 20. For the week, the

index was up 0.6%, after two straight weekly declines.

"There is still a lot of (geopolitical) uncertainty, but it

is hard to ignore the strength in corporate fundamentals," said

Angelo Kourkafas, a senior global investment strategist at

Edward Jones. "I think corporate profits are doing the heavy

lifting for the index."

The United States said it expected an Iranian response as soon

as Friday to its latest proposal to end the war in the Gulf,

even as U.S. and Iranian forces traded fire and the United Arab

Emirates came under renewed attack.

Canada's unemployment rate rose to a six-month high in April

to 6.9% as the economy lost a net 17,700 jobs, indicating

continued weakness in a labor market that has struggled in the

face of U.S. tariffs.

"The implication for markets is that (the data) will likely

keep the Bank of Canada on hold and it's paring back some of the

rate hike expectations that we've seen in the bond market,"

Kourkafas said.

Canada's 2-year yield fell 7.4 basis points to

2.860%, extending its pullback from a six-week high of 3.077% on

Monday.

In contrast, U.S. employment data pointed to labor market

resilience, reinforcing expectations the U.S. Federal Reserve

would leave interest rates unchanged for some time.

The materials group, which includes metal mining

shares, rose 3.3% as the price of gold increased.

Another bright spot was the consumer discretionary sector

. It added 1.1%, with shares of Aritzia ( ATZAF ) up

4.5% after the clothing retailer beat earnings estimates.

Enbridge ( ENB ) reported first-quarter adjusted profit

that surpassed analysts' expectations. Still, the pipeline

operator's shares were down 0.5%, which helped cap gains for the

energy sector. U.S. crude oil futures settled 0.6% higher

at $95.42 a barrel.