Japanese stocks climbed for a third day, led by financial companies, on optimism government and central bank policies will lift the market and restore growth. Sumitomo Mitsui Financial Group Inc., Japan’s No. 3 publicly traded bank, added 5.6 percent on speculation the Bank of Japan may act to bolster bank capital at its policy meeting starting today, and after London-based Barclays Plc said it had a “strong start” to 2009. Orix Corp., the country’s largest non-bank financial company, surged 18 percent. Sumco Corp., the world’s second-largest maker of silicon wafers, gained 8.4 percent on a brokerage upgrades. The Nikkei 225 Stock Average added 150.14, or 2 percent, to 7,854.29 as of 12:55 p.m. in Tokyo, set to close at its highest since Feb. 10. The benchmark gauge has rallied 9.2 percent in the last three days, a rally unmatched since December. The broader Topix index climbed 14.67, or 2 percent, to 756.36. “This upward movement in the market could continue until the early part of April,” said Fujio Ando, who helps oversee the equivalent of $1 billion as managing director at Tokyo-based Chibagin Asset Management Co. “Expectations are heightening that we’ll see some additional policies designed to aid the economy and boost stock prices.” The Nikkei is off 57 percent from a high reached in July 2007. The global recession and strengthening yen has decimated earnings at the nation’s export-reliant companies, leaving the gauge trading at 156 times estimated profit. Sumitomo Mitsui rose 5.6 percent 3,190 yen. Orix rallied 18 percent to 2,675 yen. The company was cited as one of Japan’s cheapest on a 10-year earnings basis in a March 13 report by UBS AG. Tokio Marine Holdings Inc., Japan’s largest property insurer, surged 6.8 percent to 2,190 yen. ‘Strong Start’ The Bank of Japan starts a two-day policy meeting today. Kyodo news said today the central bank may buy subordinated loans and bonds from lenders to increase their capital base, allowing them to continue providing loans to cash-strapped companies even as share prices fall. Barclays, the U.K.’s third-biggest bank, said yesterday it had a “strong start” to 2009, echoing comments from Citigroup Inc., HSBC Holdings Plc and JPMorgan Chase & Co. Sumco rallied 9.4 percent to 1,439 yen, the steepest advance since Jan. 9. The shares were raised to “buy” at Nomura Holdings Inc. and KBC Securities Japan. “We continue to expect sequential quarterly improvement,” Joel Scheiman, an analyst at KBC, wrote in a note to clients. “Despite the current depressed earnings, Sumco retains strong positioning in semiconductor silicon.” Rival Shin-Etsu Chemical Co., the world’s largest maker of silicon wafers, gained 1.1 percent to 4,710 yen. Elpida Memory Inc., Japan’s largest memory chipmaker, climbed 7.5 percent to 499 yen. Hitachi Restructuring “While this bear market rally looks like it’s got further to go, stocks are starting to get a bit top heavy,” Mamoru Shimode, chief equity strategist at Resona Trust & Banking Co. said in an interview with Bloomberg Television. “Investors are looking to do some rotational buying today.” Hitachi Ltd. rose 1.1 percent to 266 yen, reversing a 1.5 percent loss. The country’s largest electronics maker said yesterday Takashi Kawamura, 69, will take over as president and chief executive officer starting April 1. It also plans to spin off its automotive systems and consumer units. Kawamura “was a surprising choice, and since the results achieved at the three subsidiaries of which he has previously been president were not particularly noteworthy,” Hideyuki Maekawa, an analyst at Credit Suisse Group AG, wrote in a note to clients. “We do not believe the new measures represent the right steps to improve profitability.” Yamada Denki Co., Japan’s biggest electronics retailer, jumped 5.2 percent to 3,640 yen. Chief Cabinet Secretary Takeo Kawamura said today the government is considering paying for analog televisions sets to encourage a switch to digital TVs ahead of a July 2011 change in broadcasting systems.

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