* TSX gains 0.27 percent to 12,102.97
* Financial shares up 0.85 pct
* Energy nearly reverses losses (Updates to close)
By Ka Yan Ng
TORONTO, April 19 (Reuters) - Toronto's main stock index ended higher on Monday as financial shares gained on positive U.S. earnings and economic data, and commodity stocks pared early losses triggered by last week's fraud charges against Goldman Sachs.
The charges against the financial powerhouse initially shook stocks and commodity markets for a second consecutive session, and took the Toronto index down nearly 1 percent to its lowest in more than three weeks.
But heavily-weighted financial shares helped push the index into positive territory late in the session, supported by expectation-beating results from U.S. bank Citigroup (C.N) and a larger-than-expected gain in an index of leading U.S. economic indicators. [ID:nN19175994] [ID:nN19163699]
Royal Bank of Canada (RY.TO), the country's largest lender, gained 0.99 percent to C$62, and No. 2 Toronto-Dominion Bank (TD.TO) rose 1.1 percent to C$76.97. Overall, the financial sector gained 0.85 percent.
There was also relief that no new lawsuits against other big banks emerged on Monday, and market players were able to focus on corporate results and the economic recovery.
"The lack of any additional news today has made people a little bit more comfortable that this won't turn into a large number of lawsuits against a large number of firms," said Kate Warne, Canadian market strategist at Edward Jones in St. Louis, Missouri.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended up 32.31 points, or 0.27 percent, at 12,102.97. Half of its 10 sectors were higher.
The Goldman news and resulting risk aversion also initially weighed on price of oil, down below $82 a barrel, sending energy shares sharply lower at the start of the day.
But the energy group pared nearly all its losses by day's end, finishing down 0.06 percent.
Shares of Suncor Energy Inc (SU.TO), Canada's biggest oil company, reversed losses to end up 1.19 percent at C$34.05, while Nexen NXY.TO was up 1.32 percent at C$26.14.
$1=$1.02 Canadian Editing by Jeffrey Hodgson