CANADA STOCKS-TSX extends rally as yields decline and commodity prices rise

By Ragini Mathur

April 24 (Reuters) - Canadian stocks climbed on Thursday as falling bond yields and rising commodity prices boosted investor sentiment, while markets also weighed evolving U.S. tariff policies.

The Toronto Stock Exchange's S&P/TSX Composite Index .GSPTSE climbed 0.5% to 24,604.05 points, and was on course for the third successive daily gain.

The heavily weighted energy sector .SPTTEN added 0.6% as oil prices recovered some losses on Thursday.

Materials .GSPTTMT also climbed 0.6% after gold prices rebounded, as investors bought bullion following a sharp decline in the previous session.

"Any sign of commodities stabilizing, I think is a good sign in today's market," said Michael Sprung, president at Sprung Investment Management.

Canadian government bond yields fell across the curve with 10-year bond yields CA10YT=RR falling 5.8 basis points to 3.191%.

Falling yields, which reduce the risk-free rate benchmark, decrease borrowing costs and enhance the value of companies' future cash flows.

Among index sectors, information technology .SPTTTK rose over 1%; electronics manufacturer Celestica CLS.TO led sector gains at 5%.

Healthcare stocks .GSPTTHC advanced 1.3%, buoyed by cannabis producer Tilray Brands TLRY.O, which surged 4%

On the flip side, consumer staples .GSPTTCS lost the most, falling 0.4%.

China on Thursday called for all "unilateral" U.S. tariffs to be canceled, as signs emerged that the Trump administration may de-escalate its trade war with Beijing.

On Wednesday, TSX had climbed to a three-week high as some optimism took hold of a letup in the global trade war.

However, later that day, Trump said a 25% tariff on cars imported from Canada to the United States could go up.

Investors' attention was also divided among a series of earnings reports from U.S. companies, which presented a mixed picture.

Among domestic earnings, miner Teck Resources TECKb.TO beat first-quarter expectations, helped by higher commodity prices and copper sales volumes. Its shares rose 3.8%.