By Masaki Kondo Dec. 15 (Bloomberg) -- Japan stocks rose as speculation the U.S. will prevent automakers from going bankrupt overshadowed the biggest drop in domestic manufacturers’ confidence in 34 years. Denso Corp., the largest listed auto supplier, soared 10 percent, almost reversing a plunge in the previous session. Mitsui O.S.K. Lines Ltd. led shipping lines higher after cargo fees for commodities rose by a record. Canon Inc., which gets a third of its sales from the Americas, gained 6 percent after the yen retreated from the strongest level in 13 years against the dollar. Mitsubishi Estate Co. climbed 7.8 percent on a media report the developer plans to raise office rents. The Nikkei 225 Stock Average climbed 426.73, or 5.2 percent, to 8,662.60 as of 12:51 p.m. in Tokyo, while the broader Topix index rose 34.11, or 4.2 percent, to 847.48. The benchmarks dived on Dec. 12 after the U.S. Senate rejected a $14 billion rescue plan for automakers. The Nikkei had risen by a tenth in the four days through Dec. 11 after the U.S. and China announced stimulus plans to curb the economic slump. “All the bad news has been more or less priced in,” Kiyoshi Ishigane, a Tokyo-based senior strategist at Mitsubishi UFJ Asset Management Co., which oversees about $61 billion, said in an interview with Bloomberg Television. “What should be noted is that governments globally have prepared economic stimulus plans. I expect these measures to significantly alleviate the slowdown in economies.” The Nikkei is poised for a 44 percent decline this year, the worst on record, as Japan, Europe and the U.S. are mired in their first simultaneous recession since World War II. Bailout Plan The Bush administration will consider using a bank-bailout fund to finance General Motors Corp. and Chrysler LLC, the White House said in a statement. GM Chief Executive Officer Rick Wagoner spoke with White House Chief of Staff Joshua Bolten and Treasury Secretary Henry Paulson about a short-term plan to keep the automaker solvent, a person familiar with the talks said. An index that measures confidence among large makers of cars and electronics fell to minus 24 from minus 3, the sharpest drop since August 1974, the Bank of Japan’s quarterly Tankan survey showed today. The median estimate of economists surveyed by Bloomberg was for a decline to minus 23. A negative number means pessimists outnumber optimists. Denso jumped 10 percent to 1,574 yen, while Aisin Seiki Co., Japan’s largest maker of car transmissions, surged 9.4 percent to 1,221 yen. Suzuki Motor Corp., the nation’s second-biggest minicar maker, climbed 12 percent to 1,226 yen. The yen depreciated against the dollar to as much as 91.98 today after reaching 88.53 on Dec. 12, its strongest level since August 1995. A weaker yen boosts the value of overseas sales of Japanese companies when converted back to local currency. Canon, the world’s biggest digital-camera maker, rose 6 percent to 2,745 yen, while game maker Nintendo Co. climbed 4.6 percent to 34,500 yen in Osaka trading. Sony Corp., the world’s second-biggest maker of consumer electronics, added 4.4 percent to 1,941 yen. ‘Short-term Rebound’ Mitsui O.S.K., Japan’s second-biggest shipping line, climbed 11 percent to 607 yen, while larger rival Nippon Yusen K.K. jumped 5.5 percent to 554 yen. Kawasaki Kisen Kaisha Ltd. gained 9.6 percent to 413 yen. A gauge of shipping companies rose the most among 33 industry groups on the Topix. The Baltic Dry Index, a measure of shipping costs for commodities, soared 7.5 percent on Dec. 12, the biggest jump in its 23-year history and extending its advance to a fifth day. The benchmark is down 94 percent from its all-time high in May. “With manufacturers holding back on investment and economies not yet at their bottoms, it’s still too early to think shipping fees have started to recover,” said Mitsushige Akino, who oversees about $468 million at Tokyo-based Ichiyoshi Investment Management Co. “I’d rather say the recent gain in the Baltic was a mere short-term rebound.” Mitsubishi Estate, Japan’s second biggest real estate company, jumped 7.8 percent to 1,357 yen. The company plans to boost office rents in Tokyo’s Marunouchi business area by about 15 percent as those properties remain “highly sought-after,” the Nikkei newspaper said today. Market leader Mitsui Fudosan Co. rose 8.1 percent to 1,359 yen, and Sumitomo Realty & Development Co., the third largest, added 7.8 percent to 1,313 yen. Nikkei futures expiring in March added 4.7 percent to 8,680 in Osaka and gained 5 percent to 8,675 in Singapore. To contact the reporter for this story: Masaki Kondo in Tokyo at mkondo3@bloomberg.net.

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