CANADA STOCKS-TSX climbs to fresh record after upbeat jobs data

By Avinash P

Dec 5 (Reuters) - Toronto's main stock index rose to a fresh peak on Friday, and was on track for weekly gains, after stronger-than-expected domestic jobs data fueled optimism about the economy.

The S&P/TSX Composite index .GSPTSE rose as much as 0.2% to touch an all-time high of 31,533.40 points. It was last at 31,531.84 points.

Canada's unemployment rate once again defied expectations and fell to a 16-month low in November as a solid gain in part-time jobs boosted the number of people employed for the third time in a row, data showed.

The economy added a net 53,600 jobs in November, while analysts polled by Reuters had forecast a decrease of 5,000 jobs.

"The (jobs) data cement expectations that the Bank of Canada will remain on hold next week and likely is done with its easing cycle," said Angelo Kourkafas, investment strategist at Edward Jones Investments.

The Bank of Canada is widely seen holding interest rates at 2.25% next week. Traders now expect the BoC to tighten the lending rate in 2026, with the swap market pricing in 15 basis points of rate hike next year from 5 bps before the data. 0#CADIRPR

The main index was set for its second week of gains as robust results from major Canadian banks and higher oil prices helped reverse some of the early-week losses due to a slide in technology and mining shares.

Meanwhile, U.S. personal consumption expenditures (PCE) price index - the Federal Reserve's preferred gauge of inflation - came largely in line with expectations ahead of the U.S. central bank's policy decision next week.

In other corporate news, lender Laurentian Bank's fourth-quarter profit missed analysts' estimates; the shares traded nearly flat.

Orla Mining's OLA.TO shares declined 6.8% after Fairfax Financial Holdings FFH.TO sold 25 million shares of the miner.