Japanese stocks snapped a three-day losing streak as a weaker yen and a government plan to support equities overshadowed falling confidence among manufacturers. Honda Motor Co., which gets more than half its sales in North America, added 6.5 percent after the yen fell and speculation grew that market share will expand if U.S. automakers go bankrupt. Daiwa Securities Group Inc., Japan’s No. 2 brokerage, jumped 6.1 percent on optimism Japan’s government will act to bolster the stock market. Mitsubishi Corp., a trading house that gets more than half its profit from commodities, leapt 5.4 percent after metal and oil prices rose. The Nikkei 225 Stock Average climbed 151.08, or 1.9 percent, to 8,260.61 as of 12:46 p.m. in Tokyo, rebounding from its lowest close in almost two weeks. The broader Topix index advanced 15.44, or 2 percent, to 789.10, with all but four of its 33 industry groups rallying. “Businesses are getting out of the worst period in terms of earnings,” said Kiyoshi Ishigane, a senior strategist at Mitsubishi UFJ Asset Management Co., which oversees about $61 billion. “As the new fiscal year begins, fund managers are starting to buy into the market. Their purchases encompass a wide range of shares so as to track index performance.” The Topix tumbled 36 percent in the fiscal year ended yesterday, the steepest tumble on record going back to 1969, as the global economy slipped into recession. The gauge’s constituents have traded at below their corporate net worth since Nov. 10. Pessimistic Tankan An index measuring sentiment among large makers of cars, electronics and other goods slid to minus 58 in March from minus 24 in December, the Bank of Japan’s Tankan survey showed today. A negative number means pessimists outnumber optimists. Pretax profit at large enterprises is expected to drop by 11 percent for the year starting today, according to the report, easing from an estimated 43.7 percent decline in fiscal 2008. Honda, Japan’s No. 2 automaker, surged 6.5 percent to 2,465 yen, and smaller rival Nissan Motor Co. jumped 6.6 percent to 373 yen. Market leader Toyota Motor Corp. rose 4.8 percent to 3,280 yen even after the Nikkei newspaper said the company will cut its second-half dividend for the first time since 1995. The Japanese currency depreciated to as much as 99.47 yen per dollar from 97.96 at the close of stock trading in Tokyo yesterday. The yen fell versus the euro to 131.89 from 129.55. A weaker Japanese currency boosts the value of overseas sales. Automakers as a group posted the steepest advance among the Topix’s 33 groups. U.S. Automakers U.S. President Barack Obama is prepared to let Chrysler LLC go bankrupt if the third-largest U.S. automaker can’t form an alliance with Italy-based Fiat Spa, said members of Congress who have been briefed on the subject and two other people familiar with the administration’s deliberations. Obama has determined bankruptcy is the best way for General Motors Corp. to restructure, the people said. “Globally, the Japanese auto industry is the most competitive, and because of concern about the outlook and about the U.S., these companies are trading on very attractive valuations,” Diane Lin, a Sydney-based fund manager at Pengana Capital, which oversees about $1.9 billion, said in an interview with Bloomberg Television. Daiwa soared 6.1 percent to 454 yen, set for the sharpest advance since March 23. Mizuho Financial Group Inc., Japan’s No. 2 listed bank, advanced 2.1 percent to 192 yen, and bigger rival Mitsubishi UFJ Financial Group Inc. added 3.4 percent to 492 yen. Third Stimulus Japanese Prime Minister Taro Aso yesterday said his administration will compile a third stimulus package by mid- April to address the “economic crisis.” His Liberal Democratic Party recommended buying shares to shore up the stock market and to preserve banks’ capital, while aiming to create 2 million jobs in three years. Mizuho and Mitsubishi UFJ posted a loss in the three months to Dec. 31, hurt by bad-loan costs and the falling value of shareholdings. The Nikkei newspaper today said the banks will likely report net losses for last fiscal year. Mitsubishi Corp., the nation’s biggest trading company by market value, climbed 5.4 percent to 1,354 yen, and No. 2 Mitsui & Co. rose 3.6 percent to 1,021 yen. Inpex Corp., Japan’s top oil and gas explorer, leapt 3.7 percent to 708,000 yen. Crude oil for May delivery rose 2.6 percent to $49.66 a barrel in New York yesterday, capping an 11 percent gain for the three months ended yesterday. A measure of six primary metals traded in London advanced 2.1 percent. Nikkei futures expiring in June added 1.9 percent to 8,270 in Osaka and jumped 1.7 percent to 8,270 in Singapore.

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