CANADA STOCKS-TSX climbs as investors shake off Middle East jitters

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TSX up 0.7%

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Energy shares lead gains

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TSX set for weekly loss

(Updated at 10:00 a.m. ET/ 1400 GMT)

By Purvi Agarwal

April 19 (Reuters) - Canada's main stock index edged higher on Friday, aiming to recoup some weekly losses, as investors shed caution around Middle East tensions after Iran downplayed the reported Israeli attack.

At 10:00 a.m. ET (14:00 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 149.81 points, or 0.69%, at 21,858.25.

Communication services stocks rose 0.8%, while energy shares led gains with a 1.0% rise, tracking higher oil prices.

Information technology shares advanced 0.4%, followed by heavy-weight financials that gained 0.7%.

The TSX saw broader gains, with all sectors trading higher after Tehran played down a reported Israeli attack and indicated it had no plans for retaliation - a response that appeared gauged towards averting region-wide war.

"Last night it looked like there was going to be a big sell-off today, but markets have been fighting their way back over night," said Colin Cieszynski, chief market strategist at SIA Wealth Management.

Traders could be buying the dip after a big sell-off, but it does not seem very aggressive, Cieszynski said.

The index snapped its recent losing streak on Wednesday but is set to extend losses to a second straight week.

The real estate sector was set to lag its sectoral peers this week, while technology stocks are set to outperform them.

Across the border, the Dow and the S&P 500 opened flat, while a declining Netflix weighed on the Nasdaq.

In corporate news, crypto miners Hut 8 and Bitfarms gained 1.6% and 0.4%, respectively, tracking a 2.3%.rise in Bitcoin.

In the week ahead, investors will brace for big tech earnings from the United States, while corporate earnings in Canada will also pick up pace. (Reporting by Purvi Agarwal in Bengaluru; Editing by Ravi Prakash Kumar)