(Reuters) - Canada's main stock index was set to snap a two-day losing streak on Wednesday, as latest media reports raised hopes that the United States and China would make progress in resolving their prolonged trade war during this week's high-level talks.
China was open to a partial trade deal with the U.S., a Bloomberg report said, despite the recent blacklisting Chinese technology firms.
Adding to the upbeat mood, was a report by the Financial Times that Beijing was offering to increase its annual purchases of U.S. agricultural products.
The world's top two economies are scheduled to begin their high-level trade talks on Thursday.
At 9:41 a.m. ET (13:41 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 57.4 points, or 0.35%, at 16,351.35.
Eight of the index's 11 major sectors were trading higher.
The energy sector climbed 0.4% as U.S. crude prices were up 1.7% a barrel, while Brent crude added 1.6%. [O/R]
The financials sector gained 0.3%, and the industrials sector rose 0.5%.
The materials sector, which includes precious and base metals miners and fertilizer companies, added 0.1% as gold futures rose 0.6% to $1,505.8 an ounce. [GOL/] [MET/L]
On the TSX, 162 issues were higher, while 61 issues declined for a 2.66-to-1 ratio favoring gainers, with 9.98 million shares traded.
The largest percentage gainers on the TSX were Encana Corp <ECN.TO>, which climbed 2.4%, and Aurora Cannabis Inc <ACB.TO>, which rose 2.2%.
Exchange Income Corp <EIF.TO> fell 4.3%, the most on the TSX, while the second biggest decliner was Pason Systems Inc <PSI.TO>, down 1.8%.
The most heavily traded shares by volume were Green Organic Dutchman Holdings Ltd <TGOD.TO> and Aurora Cannabis.
The TSX posted four new 52-week highs and no new low.
Across all Canadian issues there were seven new 52-week highs and five new lows, with total volume of 19.16 million shares.
(Reporting by Medha Singh in Bengaluru; Editing by Amy Caren Daniel)