Japanese stocks climbed, driving the Nikkei 225 Stock Average higher for the second straight day, after commodity prices gained and U.S. manufacturing data topped forecasts. Mitsubishi Corp., Japan’s largest commodities trader, advanced 4.3 percent, while Mitsui & Co., the No. 2, jumped 4.6 percent. Toyota Motor Corp., the world’s largest automaker, rose 1.1 percent. Mitsubishi UFJ Financial Group Inc., Japan’s biggest bank by market value, increased 0.9 percent after European banks reported better-than-estimated earnings. “Gains in commodity prices are telling investors the global economy may not be as bad as people thought,” said Hiroshi Morikawa, a strategist in Tokyo at MU Investments, which manages about $14 billion. “The better-than-expected manufacturing data is also giving some sense of relief.” The Nikkei 225 Stock Average rose 0.9 percent to 9,654.76 as of 12:59 p.m. in Tokyo. The broader Topix gained 0.8 percent to 857.63, with about three stocks rising for each that fell. The gauges pared gains after the yen strengthened against the dollar, damping the earnings outlook for exporters. The Topix climbed as much as 1.1 percent yesterday as companies from Honda Motor Co. to Hitachi raised profit targets. The gauge has tumbled about 14 percent from its high on April 15 on concern China’s measures to limit property-price inflation and Europe’s government-debt would stall global growth. Companies in the index trade at 16.4 times estimated earnings, compared with 13.6 times for those in the Standard & Poor’s 500 Index and 12 times for those in the Stoxx Europe 600 Index. Mitsubishi Jumps A measure of trading companies posted the steepest gain among the Topix index’s 33 industry groups. Mitsubishi jumped 4.3 percent to 1,965 yen, and Mitsui & Co. increased 4.6 percent to 1,160 yen. Smaller rival Itochu Corp. advanced 4.5 percent to 714 yen. Sumitomo Metal Mining Co., Japan’s second-largest copper smelter and top producer of nickel, gained 3.1 percent to 1,183 yen, while Mitsui Mining & Smelting Co. climbed 2.6 percent to 240 yen. Crude oil for September delivery gained 3 percent yesterday as the global stock-market rally increased speculation the economy is strengthening. Copper futures for September delivery rose 2.4 percent, and the London Metal Exchange Index of six metals increased 3 percent. Toyota rose 1.1 percent to 3,140 yen. Mazda Motor Corp., Japan’s second-largest car exporter, climbed 1.5 percent to 209 yen. Nissan Motor Co. increased 1.5 percent to 673 yen. A measure of automakers was the second-biggest contributor to the Topix index’s advance. Bridgestone Corp., the world’s largest tiremaker, increased 1.8 percent to 1,598 yen. Olympus Corp., an endoscope maker that receives more than a fifth of its revenue from North America, advanced 1.4 percent to 2,368 yen. Banks Climb In New York, the S&P 500 rose 2.2 percent yesterday to its highest close in 11 weeks, buoyed by a gauge of manufacturing from the Institute for Supply Management and by company earnings that were higher than estimated by analysts and economists surveyed by Bloomberg. Stocks pared gains after the yen strengthened against the dollar, mitigating their earlier boost from the U.S. manufacturing data. The yen appreciated to 86.40 against the dollar from 86.58 at the close of stock trading in Tokyo yesterday. The stronger yen reduces income when overseas revenue is converted into local currency. Banks advanced after HSBC Holdings Plc, Europe’s biggest bank, and BNP Paribas SA, the largest lender in France, reported profit that topped estimates, boosting confidence in the health of the industry. Mitsubishi UFJ Financial Group rose 0.9 percent to 431 yen. Mizuho Financial Group Inc. gained 1.4 percent to 142 yen after Japan’s second-largest publicly traded bank by assets was raised to “outperform” from “neutral” at Daiwa Securities Capital Markets Co. Sumitomo Mitsui Financial Group Inc. climbed 1.1 percent to 2,694 yen. Among stocks that fell, Shionogi & Co. declined 3.7 percent to 1,607 yen after the Japanese maker of the Crestor cholesterol pill had its rating cut to “neutral” from “outperform” at Credit Suisse Group AG. Shionogi was the second-biggest drag on the Nikkei 225. To contact the reporter for this story: Kana Nishizawa in Tokyo at knishizawa5@bloomberg.net.

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