Energy stocks led Canada’s main stock index higher on Thursday, as investors took stock of U.S.-Japan trade negotiations, although sentiment remained fragile amid tariff uncertainties.
Toronto Stock Exchange’s S&P/TSX Composite Index rose 0.16% to 24,141.14 points, and was poised for its largest weekly advance since September 2024, if gains hold.
On the day, the energy sector powered the gains, climbing 1.8% as oil prices reached their highest level in two weeks.
Markets have been focused on the rapidly evolving trade policies under the Trump administration, with investors awaiting potential agreements between the U.S. and its trading partners.
On Wednesday, U.S. President Donald Trump touted “big progress” in tariff talks with Japan. Japanese representative Ryosei Akazawa revealed limited details but confirmed a second meeting is scheduled for later this month, noting Trump called a deal with Japan a “top priority.”
“Markets tend to respond positively when protectionist risks recede,” said David Ferreira, portfolio manager at Harbourfront Wealth Management.
Resource shares help lift Toronto stock market to weekly gain
“A stable trading relationship between two major global economies reinforces confidence in global supply chains and demand forecasts — both of which are key for Canadian exporters and commodity producers”.
Bond proxy utilities rose 1.3%, as Canada’s 10-year bond yield fell to 3.090% after sharply rising in the previous session. Heavy-weighted financials added 0.3%.
Capping the gains, materials group which include metal mining shares, dropped over 1% as gold prices pulled back from a record high on profit booking.
Healthcare stocks were down 0.3%, with cannabis firm Tilray Brands falling 5% to the bottom of the benchmark index.
The Canadian stock markets will be closed on Friday for the Good Friday holiday.
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