CANADA STOCKS-TSX hits 3-week high on reports of softer US stance on new tariffs

Updates with morning prices

By Sanchayaita Roy

March 24 (Reuters) - Canada's main stock index rose on Monday on broad-based gains driven by hopes for a moderate approach by the U.S. on new tariffs.

Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 1.31% at 25,297.01, its highest level in three weeks.

U.S. President Donald Trump's administration is likely to exclude a set of sector-specific tariffs while applying reciprocal levies on April 2, according to media reports over the weekend that helped boost investor sentiment.

"There's a lot of optimism that the U.S. may be more targeted in their tariffs versus a broad-based approach," said Ian Chong, portfolio manager at First Avenue Investment Counsel.

"The headlines in the U.S. right now are lifting all North American markets (including Canada)."

On TSX, information technology .SPTTTK sector advanced nearly 2%, with blockchain farm operator Bitfarms BITF.TO rising 3.23% after bitcoin BTC= climbed 2.4%.

The energy sector .SPTTEN gained 1.4%, as oil prices strengthened. O/R

The heavily-weighted financials .SPTTFS also rose 1.4%.

Meanwhile, copper miners gained as traders increased shipments to the U.S. in response to Trump's tariff threats on industrial metal imports. Teck Resources TECKb.TO, First Quantum Minerals FM.TO and Hudbay Minerals HBM.TO gained between 1.8% and 2.8%. MET/L

On the data front, U.S. business activity picked up in March, but growing fears over import tariffs and deep government spending cuts weighed on prospects for the rest of the year.

Canada's January GDP figures and the U.S. Federal Reserve's preferred inflation reading — the Personal Consumption Expenditure (PCE) data — are expected later in the week.

Back home, new Prime Minister Mark Carney called a snap election for April 28 on Sunday, saying he needed a strong mandate to deal with the threat posed by Trump.

Among individual stocks, Peyto Exploration & Development PEY.TO advanced nearly 4% after BMO upgraded its rating to "outperform" from "market perform".

(Reporting by Ragini Mathur and Sanchayaita Roy in Bengaluru; Editing by Sahal Muhammed)

((Ragini.Mathur@thomsonreuters.com;))