RTRS: Nikkei rises; autos gain with GM uncertainty removed
TOKYO (Reuters) - Japan's Nikkei average gained 0.9 percent on Tuesday following U.S. manufacturing data that reinforced hopes that demand will stabilize, while automakers such as Toyota and Honda climbed after General Motors' bankruptcy filing removed some uncertainty from the market.
Nomura Real Estate (3231.T: Quote, Profile, Research, Stock Buzz) slid 3.6 percent to 1,605 yen after the company said it plans to raise 64 billion yen ($660 million) by offering new shares.
"The market is being lifted with the bankruptcy filing of General Motors seen to have removed a hurdle that blocked previous advances," said Takahiko Murai, general manager of equities at Nozomi Securities.
General Motors (GM.N: Quote, Profile, Research, Stock Buzz) filed for bankruptcy protection on Monday as the Obama administration took the first steps to try to revive a failed icon of American industry by extending unprecedented federal funding and oversight.
"Energy and resource-related shares are also being sought, at least for the short term, on the continuing rise of oil and commodity prices," Murai said.
Among steelmakers, Nippon Steel (5401.T: Quote, Profile, Research, Stock Buzz) rose 3.8 percent to 387 yen and Sumitomo Metal Industries (5405.T: Quote, Profile, Research, Stock Buzz) climbed 3.4 percent to 277 yen. The iron and steel subindex rose 3.1 percent and was one of the biggest gainers among the subindexes.
Oil and gas developer Inpex (1605.T: Quote, Profile, Research, Stock Buzz) gained 1.7 percent to 789,000 yen following crude oil's rise to a seven-month high on Monday.
The Reuters-Jeffries CRB index .CRB, a global commodities benchmark, hit a near seven-month high on Monday as markets from oil to industrial metals and grains rose on signs of economic recovery.
Sojitz Corp (2768.T: Quote, Profile, Research, Stock Buzz) advanced 3.5 percent to 210 yen and fellow trading house Mitsui (8031.T: Quote, Profile, Research, Stock Buzz) gained 1.9 percent to 1,311 yen.
The benchmark Nikkei .N225 ended morning trade up 86.39 points at 9,764.14, after hitting 9,793.47, its highest since October 8. The broader Topix .TOPX gained 1 percent to 921.54.
"The equity market is rising in what is still a recession. The advance is not smooth as investors look to correct any gains deemed to have gone too far above actual economic conditions, but the market has also developed firm downside support as well," said Kenichi Hirano, operating officer at Tachibana Securities.
Toyota Motor Corp (7203.T: Quote, Profile, Research, Stock Buzz) rose 2.1 percent to 3,900 yen and Honda Motor Co (7267.T: Quote, Profile, Research, Stock Buzz) gained 3.1 percent to 2,845 yen. Nissan Motor Co (7201.T: Quote, Profile, Research, Stock Buzz) rose 4.1 percent to 608 yen.
Suzuki Motor Corp (7269.T: Quote, Profile, Research, Stock Buzz), which said on Tuesday it had exposure of around 72 billion yen ($745 million) to GM affiliates but no direct exposure to the failed U.S. carmaker, edged up 0.7 percent to 2,125 yen.
Konica Minolta (4902.T: Quote, Profile, Research, Stock Buzz) shed rose 0.1 percent to 1,089 yen after dropping as much as 3.2 percent after the Nikkei business daily reported that it aims to shave fixed costs by 33 billion yen in the business year to next March 31 by spending less in areas such as personnel and research and development.
The S&P 500 .SPX rose to its highest close in seven months on Monday as reassuring U.S. manufacturing data reinforced hopes that demand will stabilize. .N
Data released on Monday showed that the U.S. manufacturing sector contracted at a slower rate May for the fifth straight month.
Trade was active, with 1.3 billion shares changing hands on the Tokyo exchange's first section compared to last week's morning average of 1 billion.
Advancing shares outnumbered declining ones by more than 2 to 1.
