CANADA STOCKS-Toronto market falls 1.2% as bond yields climb

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TSX ends down 1.2% at 19,450.70

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Industrials and utilities among biggest decliners

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Scotiabank falls after announcing job cuts

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Energy edges higher; oil settles up 1.9%

(Updates at market close)

By Fergal Smith

Oct 18 (Reuters) - Canada's main stock index fell on Wednesday, including declines for interest-rate sensitive stocks, as long-term borrowing costs rose and investors weighed rising tensions in the Middle East.

The Toronto Stock Exchange's S&P/TSX composite index ended down 242.1 points, or 1.2%, at 19,450.70, after posting its highest closing level in three weeks the day before.

U.S. stocks also ended sharply lower as U.S. Treasury yields rose to a 16-year high and investors assessed the latest batch of quarterly corporate results and forecasts, while the continued Israel-Hamas conflict stoked risk aversion.

Nine of the 10 major sectors on the Toronto market ended lower. It included declines of 2% or more for industrials, as well as utilities and real estate, two sectors that are particularly sensitive to higher interest rates.

Heavily-weighted financials lost 1.8%, with Bank of Nova Scotia shares ending 2.2% lower after the bank announced plans to cut about 2,700 jobs globally.

Energy was the lone sector to gain ground, rising 0.4%, as oil settled 1.9% higher at $88.32 a barrel.

"The oil market is going to remain very tight going forward and the next move with prices will depend on whether geopolitical risks disrupt crude flows," Edward Moya, senior market analyst at OANDA, said in a note.

Gold also rallied. Still, the materials sector, which includes precious and base metals miners and fertilizer companies, lost 0.3%, giving back some recent gains. (Reporting by Fergal Smith in Toronto and Shubham Batra and Khushi Singh in Bengaluru; Editing by Shweta Agarwal and Marguerita Choy)