By Patrick Rial Dec. 10 (Bloomberg) -- Japan stocks rose a third day, led by real estate and shipping companies, on expectations the government will extend aid to developers, and as cargo fees for commodities climbed. Tokyu Land Corp., a developer with properties in western Tokyo, soared 21 percent after a newspaper said the government may give a line of credit to struggling builders. Mitsui O.S.K. Lines Ltd., Japan’s No. 2 bulk shipper, surged 10 percent after the Baltic Dry Index advanced a second day. Honda Motor Co. soared 8.9 percent as U.S. lawmakers neared agreement on a rescue plan for the nation’s automakers. The Nikkei 225 Stock Average rose 250.15, or 3 percent, to 8,646.02 as of 1:06 p.m. in Tokyo. The broader Topix index gained 15.48, or 1.9 percent, to 833.42, set for its third-consecutive advance, the longest streak since October. “Real estate funds that hold properties in the central parts of the Tokyo metropolitan area could be attractive,” said Soichiro Monji, chief strategist at Tokyo-based Daiwa SB Investments Ltd., which manages about $53 billion. “The fundamentals of the economy and corporate earnings continue to provide plenty of negative news, which is likely to overwhelm the efforts by governments and central banks worldwide.” The global recession prompted banks to rein in lending to builders while housing demand has fallen. A record 31 listed companies in Japan have gone bankrupt in 2008, with 23 of those in the property and construction industries. The government may give loans of up to 2 billion yen ($22 million) to small and midsize developers that have been unable to refinance through banks, the Nikkei newspaper reported. REITs Rise Tokyu Land surged 21 percent to 331 yen. K.K. DaVinci Advisors, which runs Japan’s biggest private real estate fund, rallied 13 percent to 7,120 yen. Pacific Holdings Co., which secured funding last month from Chinese companies, according to the Nikkei, jumped 15 percent to 3,780 yen. Creed Office Investment Corp. soared by its 2,000 yen daily limit to 14,110 yen after Ichigo Asset Group decided to take control of the Japanese real estate investment trust by acquiring its asset manager. The 40-member Tokyo Stock Exchange REIT Index, which is down 51 percent, surged by a record 11 percent. Mitsui O.S.K. surged 10 percent to 548 yen. Nippon Yusen K.K., Japan’s No. 1 shipping line operator by sales, gained 7.1 percent to 531 yen. Baltic, Cotango The Baltic Dry Index advanced for a second day from a 22- year low. The premium for 12-month oil futures contracts over the spot price, a situation known as contango, reached the highest level in a decade last week. “With long-dated oil contracts at a much higher premium to the spot price, the market is telling us that commodities are bound to rise and that the cyclical stocks have been oversold,” said Masanori Ikunaga, who helps manage the equivalent of $4.1 billion at Sumitomo Mitsui Asset Management Co. Honda, Japan’s second-biggest carmaker, surged 8.9 percent to 2,010 yen. Larger rival Toyota Motor Corp. jumped 4 percent to 2,860 yen. Congressional Democrats and White House negotiators agreed on the outlines of a $15 billion plan to give General Motors Corp. and Chrysler LLC federal loans to stay in business. To contact the reporter for this story: Patrick Rial in Tokyo at prial@bloomberg.net.

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