Japanese Stocks Climb on Matsushita's Earnings, Oil's Retreat

By Patrick Rial

July 30 (Bloomberg) -- Japanese stocks rose the most in a week after Matsushita Electric Industrial Co. beat profit estimates and oil dropped to a 12-week low, cutting costs for manufacturers.

Matsushita, the maker of Panasonic-brand products, soared the most in three months after first-quarter earnings surged on television sales. Nidec Corp., the world's biggest maker of motors for computer hard-disk drives, posted its biggest gain in a year as profit rose more than a third. Bridgestone Corp., the world's largest tiremaker by sales, advanced as oil retreated.

``I'm bullish on equities,'' said Masayuki Kubota, a senior fund manager at Daiwa SB Investments Ltd. in Tokyo, who oversees $1.7 billion. ``The two problems overhanging the market have been hyperinflation caused by oil prices and U.S. mortgages, but now at least the first concern has started to fade.''

The Nikkei 225 Stock Average advanced 208.34, or 1.6 percent, to 13,367.79 at the close of trading in Tokyo. The broader Topix index added 21.35, or 1.7 percent, to 1,302.99. Both gauges rose the most since July 24, and more than six shares gained for each that fell on the Topix.

The Topix has lost 12 percent this year as surging oil prices and $473 billion of writedowns and credit-related losses slowed global growth. Matsushita and Nidec's results bucked a trend of declining earnings. The 1,199 non-financial companies on the main board of the Tokyo exchange forecast an average 12 percent drop in pretax profit this year, according Shinko Securities Co. data.

Shares extended gains in the afternoon after food companies including Nisshin Seifun Group Inc. reported a jump in profit and earnings from ArecelorMittal boosted rival steelmakers.

Nikkei futures expiring in September added 1.8 percent to 13,370 in Osaka and gained 1.9 percent to 13,380 in Singapore.

To contact the reporter for this story: Patrick Rial in Tokyo at prial@bloomberg.net.