Japanese shares rose after U.S. manufacturing figures added to signs the global recession is abating and General Motors Corp.’s bankruptcy raised optimism Japan’s automakers will gain market share. Nippon Steel Corp, Japan’s biggest mill, rose 4 percent. Inpex Corp., the country’s No. 1 oil explorer, added 2.2 percent as crude prices gained. Toyota Motor Corp., which overtook GM last year as the biggest carmaker globally, climbed 2.1 percent. Nippon Yusen KK, the nation’s No. 1 shipping line, lost 1.3 percent as investors speculated the shares have risen too fast. The Nikkei 225 Stock Average climbed for a fifth day, adding 74.18, or 0.8 percent, to 9,751.93 as of 12:44 p.m. in Tokyo, the highest since Oct. 7. The broader Topix index added 7.80, or 0.9 percent, to 920.32. The Dow Jones Industrial Average jumped 2.6 percent in New York yesterday. “Foreign demand has helped steelmakers outpace rest of the market,” said Kiyoshi Ishigane, a senior strategist at Mitsubishi UFJ Asset Management Co., which oversees about $61 billion in Tokyo. “Given what we saw in the Dow yesterday, Japan is a bit tepid. There’s concern shares are overbought.” In the U.S., The Institute for Supply Management’s factory index rose in May to 42.8 from 40.1 the previous month. The result was less than the 50 level that signals growth, while economists estimated the gauge would gain to 42.3. A measure of new orders, a leading indicator of Japanese exports, signaled an expansion for the first time since September 2007. Economic Stimulus Economic stimulus packages introduced by governments around the world to combat the global recession total $2.2 trillion, according to Bloomberg calculations. In China alone, the government is investing $856 billion in roads, bridges and low- cost housing. Gauges tracking steelmakers and automakers were the biggest gainers among the Topix’s 33 industry groups today. Nippon Steel rose 4 percent to 388 yen. JFE Holdings Inc., Japan’s No. 2 maker of the alloy, jumped 3 percent to 3,420 yen. Smaller rival Nisshin Steel Corp. climbed 6.1 percent to 262 yen. The Topix Iron & Steel Index has soared 34 percent this year, compared with a 7.1 percent advance for the broader measure. Inpex climbed 2.2 percent to 793,000 yen. Oil for July delivery yesterday rose 3.4 percent to $68.58, the highest settlement since Nov. 4. The contract retreated today. GM, the world’s largest carmaker until its 77-year reign ended last year, filed for bankruptcy protection in the U.S. yesterday with a plan to create a viable company that can compete in world markets. The Detroit-based automaker plans to sell unprofitable brands and close at least 11 factories before emerging as a new, smaller company in 60 to 90 days. Toyota rose 2.1 percent to 3,910. Rival Honda Motor Co. jumped 2.9 percent to 2,840 yen. Mazda Motor Corp., which exports about 80 percent of its production, increased 3.2 percent to 256 yen. ‘Huge Opportunity’ “For Japanese automakers, GM’s collapse presents a huge opportunity to take market share,” said Fumiyuki Nakanishi, a strategist at SMBC Friend Securities Co. in Tokyo. “All the bad news on GM is out, and that’s a relief to the market.” Mitsubishi Materials Corp. rose 2.7 percent to 337 yen. The company, Japan’s third-biggest copper smelter, plans to cut costs to save 37 billion yen this fiscal year, Nikkei English News said today, without saying where it got the information. Nippon Yusen fell 1.3 percent to 473 yen, while Mitsui O.S.K. Lines Ltd., operator of Japan’s largest fleet of iron-ore ships, slipped 0.4 percent to 716 yen. Both companies broke a four-day winning streak and were cut to “underperform” from “neutral” by Merrill Lynch & Co., the brokerage bought last year by Bank of America Corp. The relative-strength index for a gauge of Japanese shipping stocks exceeded 70 yesterday, the threshold some traders use as a sign to sell. The shipping index, which has surged 18 percent in the past month, was the biggest loser among Topix groups. “Shipping shares have really exploded recently, so there’s a feeling they’ve overheated,” said Mitsubishi UFJ’s Ishigane.

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