Japanese stocks climbed after U.S. reports showed employment and consumer sentiment improved, boosting confidence in a global economic recovery and driving commodity prices higher. Toyota Motor Corp., the world’s biggest carmaker, rose 1.1 percent. Sony Corp., an electronics maker that gets 70 percent of its sales abroad, gained 0.8 percent after Mizuho Securities Co. recommended the stock. Mitsubishi Corp., Japan’s largest commodities trader, increased 0.6 percent after oil and metal prices climbed. Sumitomo Electric Industries Ltd., an electric- wire maker, increased 2 percent on a Nikkei newspaper report that the company will start mass producing superconductor cables. “If the U.S. economy improves further, it is realistic to expect the dollar to appreciate,” and that will benefit exporters, said Takeshi Osawa, a senior fund manager in Tokyo at Norinchukin Zenkyoren Asset Management Co., which oversees about $22 billion. “The stock market will continue to climb slowly toward the end of the year.” The Nikkei 225 Stock Average rose 0.5 percent to 10,079.76 at the 3 p.m. market close in Tokyo. The broader Topix index gained 0.4 percent to 869.81, with more than twice as many stocks advancing as falling. The Nikkei 225 has increased 9.5 percent this month. Stocks in the Japanese benchmark are valued at 17.8 times estimated earnings on average, compared with 14.1 times for the S&P 500 and 11.9 times for the Stoxx 600. U.S. Economy Futures on the Standard & Poor’s 500 Index slid 0.2 percent today. The index rose 1.5 percent yesterday, the most in four days, after the U.S. Labor Department said jobless claims fell to 407,000 last week. The median projection of economists surveyed by Bloomberg News called for a drop to 435,000. The Thomson Reuters/University of Michigan final index of November consumer sentiment increased to 71.6, the highest level since June and exceeding the median economist estimate of 69.5. “The global economy is certainly improving, so we don’t have to be pessimistic about the economic outlook,” said Hideaki Higashi, a strategist in Tokyo at SMBC Friend Securities Co. “The market should become more active.” Toyota advanced 1.1 percent to 3,305 yen, the highest close since June 16, and was the most actively traded stock by value in Japan. Honda Motor Co., Japan’s second-biggest carmaker, climbed 0.7 percent to 3,085 yen. Sony increased 0.8 percent to 2,894 yen as the company was raised to “outperform” from “neutral” at Mizuho Securities. Oil, Metals Advance Mitsubishi rose 0.6 percent to 2,128 yen and Mitsui & Co., which counts commodities as its largest source of profit, advanced 0.4 percent to 1,335 yen. Crude oil for January delivery surged 3.2 percent yesterday in New York to $83.86 a barrel, the biggest gain since July 22. The London Metal Exchange Index of prices for six industrial metals including copper and aluminum increased 1.4 percent yesterday after three consecutive declines. Sumitomo Electric Industries, which makes electric wires, leapt 2 percent to 1,102 yen, the highest since June 24. The Nikkei newspaper reported the company will start mass production of superconductor cables from 2011. Mitsui O.S.K. Lines Ltd., the operator of the world’s largest merchant fleet, increased 1.4 percent to 567 yen. The company was awarded a “long-term” contract from Vale SA for two large ore carriers, Mitsui said in a statement. Investment Recommendations Analysts’ recommendations also buoyed stocks such as Komatsu Ltd. and Daihatsu Motor Co. Komatsu, the world’s second-largest maker of mining trucks and excavators, gained 2.8 percent to 2,390 yen, the highest since August 2008. Goldman Sachs Group Inc. iterated its “buy” rating on the company because of stronger-than-expected demand for construction machinery in China. Daihatsu Motor, an automaker, jumped 3.4 percent to 1,193 yen, a level not seen since September 2008, after a Deutsche Bank AG analyst increased the 12-month share price estimate on the company to 1,400 yen from 1,250 yen, citing increasing sales of cars in members of the Association of Southeast Asian Nations. “Profits are increasing at companies benefitting from not only China but also from ASEAN nations,” Norinchukin’s Osawa said. “It’s good that reliance on the U.S. is decreasing.” Mitsubishi Electric Corp., which makes electronics goods, rose 2.7 percent to 837 yen. The company had its rating increased to “overweight” from “neutral” at JPMorgan Chase & Co., which said the company will likely post a record profit in the year ending March 2012. To contact the reporter for this story: Akiko Ikeda in Tokyo at iakiko@bloomberg.net. To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net.

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