Japan Stocks Rise After Crude Oil Tumbles; Bridgestone Advances

By Masaki Kondo

Sept. 3 (Bloomberg) -- Japan's stocks rose, breaking a two- day slide, after crude oil reached a near five-month low, brightening the earnings outlook for manufacturers.

Bridgestone Corp., the world's largest tiremaker, surged 3.3 percent, while Oji Paper Co., Japan's biggest user of high-sulfur fuel oil, climbed 5.7 percent. Oil explorer Inpex Holdings Inc. sank 2.4 percent. Elpida Memory Inc., Japan's largest maker of computer-memory chips, slumped 8.4 percent to a record low after Nomura Securities Co. cut its rating to ``neutral.''

The Nikkei 225 Stock Average climbed 134.07, or 1.1 percent, to 12,743.54 as of 10:17 a.m. in Tokyo. The broader Topix index rose 11.33, or 0.9 percent, to 1,223.70. About three stocks rose for each that retreated on the Topix.

Crude futures fell as much as 8.7 percent to $105.46, the lowest since April 4, before closing at $109.71 yesterday after Hurricane Gustav appeared to cause only light damage to oil installations and energy companies prepared to resume Gulf of Mexico production.

Bridgestone added 60 yen to 1,908, headed for the highest close since Aug. 18, while Yokohama Rubber Co. rose 3.4 percent to 582 yen. Oji leapt 31 yen to 579, and smaller rival Nippon Paper Group Inc. gained 3.6 percent to 319,000 yen.

Inpex, the nation's largest oil and gas explorer, dived 26,000 yen to 1.041 million yen and Japan Petroleum Exploration Co., the No. 2 explorer, fell 1.6 percent to 6,640 yen.

Metals Fall

Sumitomo Metal Mining Co., Japan's largest gold producer, sank 3 percent to 1,298 yen and Nippon Mining Holdings Inc., the nation's biggest copper producer, extended its decline to a third day, dropping 3.2 percent to 540 yen.

Gold futures for December delivery fell 3 percent, the most since Aug. 11, on the Comex division of the New York Mercantile Exchange yesterday. Copper futures fell to as low as $3.159, the lowest since Jan. 28.

Elpida tumbled 195 yen to 2,115 yen, set for the lowest since it listed on the bourse in November 2004. Nomura lowered its rating on the stock from ``buy.''

Nikkei futures expiring in September added 0.9 percent to 12,720 in Osaka and gained 0.8 percent to 12,725 in Singapore.

To contact the reporter for this story: Masaki Kondo in Tokyo at mkondo3@bloomberg.net.