CANADA STOCKS-TSX overcomes tariff concerns as tech shares climb

Updates at market close

By Fergal Smith

Feb 13 (Reuters) - Canada's main stock index rose on Thursday, led by technology and real estate shares, as investors took in their stride the latest U.S. tariff threats and additional evidence that U.S. inflation was picking up again.

The S&P/TSX composite index .GSPTSE ended up 135.40 points, or 0.5%, at 25,698.51, moving back in reach of the record-high close it posted in January.

"Equity markets are up today, climbing a wall of worry as they deal with sticky inflation, tariff concerns, and generally weak investor sentiment," said Brandon Michael, senior investment analyst at ABC Funds.

"This morning's hotter-than-expected PPI (producer price index) initially weighed on stocks, but as the day progressed the market rallied back, indicating exhausting selling pressure and expectations of sticky inflation already being priced in."

U.S. producer prices increased solidly in January, strengthening financial market views that the Federal Reserve would not be cutting interest rates before the second half of the year.

U.S. President Donald Trump unveiled a roadmap for charging reciprocal tariffs on every country that puts duties on U.S. imports.

As the threat of a trade war grows, Canadian investors are seeking protection in gold and in shares of companies producing goods with few substitutes, such as uranium, while looking to take advantage of a weaker loonie and expected volatility.

"Despite the volatility, the market is now within striking distance of new all-time highs, fueled by solid economic data and stronger-than-expected corporate earnings," Michael said.

Telus Corp T.TO shares added 3.7% after the communications technology company's fourth-quarter revenue beat market expectations.

The technology sector was up 1.9%, while real estate added 1% as bond yields fell. The Canadian 10-year yield CA10YT=RR was down 6.6 basis points at 3.113%.

Shares of Sun Life Financial SLF.TO were a drag, falling 7.3%, after Canada's second-largest life insurer missed fourth-quarter profits expectations.