Japan’s stocks rose, giving the Nikkei 225 Stock Average its biggest gain this year, on optimism the government will buy shares and as a better-than-expected U.S. retail sales report eased concern of a deepening global slowdown. Mitsubishi UFJ Financial Group Inc., Japan’s No. 1 listed bank, gained 5.8 percent after the Nikkei newspaper said the government is considering purchasing equities to prop up share prices. Inpex Corp., Japan’s biggest oil explorer, climbed 3.7 percent after crude surged yesterday. Olympus Corp., a maker of digital cameras and endoscopes, surged 8.8 percent as U.S. retail sales in February fell less than economists estimated. “We are looking for a rally by the end of the year,” John Vail, head of global strategy in Tokyo at Nikko Asset Management Co., which manages $93 billion in assets globally, said in an interview with Bloomberg Television. If the government broadens its efforts “into buying stocks from the general market, that would help the market a great deal.” The Nikkei 225 Stock Average soared 371.03, or 5.2 percent, to 7,569.28 at the close of trading in Tokyo, the sharpest jump since Dec. 15. The broader Topix index added 23.37, or 3.3 percent, to 724.30, after slumping to the lowest level since December 1983 yesterday. For the week, the Nikkei had a 5.5 percent jump, the best since the period ended Nov. 28. The Topix advanced 0.4 percent. The Standard & Poor’s 500 Index soared 4.1 percent in New York, capping a three-day, 11 percent advance. Bank of America Corp. followed Citigroup Inc. and JPMorgan Chase & Co. in saying it was profitable in the first two months of 2009. Share Purchase Report “The effects of economic and financial policies should put a floor on the U.S. recession from mid-year,” said Takashi Miyazaki, a senior strategist who helps oversee $61 billion at Mitsubishi UFJ Asset Management Co. in Tokyo. “As the market starts to account for the impact of policy measures, negative news becomes less important. People have started looking for a rally even in the middle of this weak market.” Japan’s government is considering using zero-coupon bonds to finance exchange-traded fund purchases as it works to shore up the stock market, the Nikkei newspaper reported. The move would allow retail investors to convert the bonds into stocks should the market rise, the report said. The Japan Business Federation, or Keidanren, proposed the ETF scheme on March 9. Separately, Prime Minister Taro Aso ordered a third spending plan aimed at easing the country’s recession. Finance Minister Kaoru Yosano said the government will also inject 121 billion yen into three regional banks and discuss ways to support the stock market. Retail Sales Mitsubishi UFJ jumped 5.8 percent to 419 yen. Sumitomo Mitsui Financial Group Inc., Japan’s No. 3 bank by assets, added 6.3 percent to 2,850 yen. Sumitomo Trust & Banking Co. soared 13 percent to 314 yen. Olympus rose 8.8 percent to 1,442 yen. Pioneer Corp., Japan’s No. 3 audio-visual equipment maker, advanced 8.1 percent to 94 yen. Honda Motor Co., Japan’s second-largest automaker, added 7.5 percent to 2,220 yen. U.S. retail purchases decreased by 0.1 percent in February, while economists had forecast a 0.5 percent drop. January’s numbers were revised higher. Inventories also declined, indicating manufacturers may need to revive some production later this year. Inpex added 3.7 percent to 675,000 yen. Trading company Mitsubishi Corp., which generates more than half of its profit from commodities, rose 3.7 percent to 1,147 yen. Electronics Alliance Crude oil for April delivery rose 11 percent to $47.03 a barrel in New York, the biggest gain since Feb. 19. The contract surged ahead of a meeting by OPEC this weekend where production may be cut for a fourth time. Sony Corp. climbed 9.1 percent to 1,893 yen, while Seiko Epson Corp. jumped 8.5 percent to 1,212 yen. Sony, the world’s No. 2 maker of consumer electronics will buy equipment for manufacturing liquid-crystal displays from Seiko Epson as part of an alliance, the companies said yesterday. Ubiquitous Energy Inc., which specializes in “esco” projects designed to save companies money by boosting the energy efficiency of buildings and factories, nearly doubled on its trading debut to 1,801 yen. It was Japan’s second new listing this year. Resona Holdings Inc., the nation’s No. 4 listed bank, slumped 4.9 percent to 1,365 yen. Kristine Li, an analyst at KBC Securities Japan, downgraded the stock to “sell” from “hold,” citing the recent jump in the shares due to a stock buyback program.

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