(Updated at 10:06 a.m. ET/ 1406 GMT)

By Nikhil Sharma

Nov 1 (Reuters) - Canada's main stock index rose on

Friday, led by consumer discretionary and energy shares,

rebounding from a selloff in the previous session as markets

inch closer to next week's U.S. election.

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

was up 139.83 points, or 0.58%, at 24,296.7.

However, the index was set to log a weekly loss as it was

partly affected by the U.S. election uncertainty and lackluster

earnings from some of Wall Street's megacaps.

At least ten sectors on the index gained, led by the

consumer discretionary sector jumping 1.6%, as it

benefitted from a 7.8% rise in Magna International ( MGA ) after

auto parts maker reported its third-quarter results.

The energy sector also jumped 1%, tracking a surge

in oil prices after reports that Iran was preparing a

retaliatory strike on Israel in the coming days.

"I think there's probably a bit of rallying given the

sell-off that happened yesterday," said Kevin Headland, co-chief

investment strategist at Manulife Investment Management.

Headland added "seasonality tends to be strong" as November

and December are typically strong months for the index.

Among economic data, U.S. job growth fell sharply in

October, but the unemployment rate remained steady at 4.1%,

keeping bets on a Federal Reserve rate cut in November intact.

Market participants widely expect the Fed to cut interest

rates by 25 basis points at its policy meeting next Thursday,

with estimates for a similar cut in December.

Global investors also weighed the potential impact of next

week's closely contested U.S. presidential election, with many

betting sites favoring Republican candidate Donald Trump's

victory.

Separately, Canadian manufacturing activity increased at a

faster pace in October as production and employment picked up in

anticipation of rising orders.

Among other stocks, Air Canada ( ACDVF ) rose 12% after

raising its annual core profit forecast and announced share

buybacks, benefitting from strong demand for international

travel.