By Masaki Kondo
Dec. 15 (Bloomberg) -- Japanese stocks rose as speculation the U.S. will prevent automakers from going bankrupt outweighed the biggest drop in domestic manufacturers’ confidence in 34 years.
Honda Motor Co., Japan’s second-largest carmaker, jumped 6.7 percent, while smaller rival Suzuki Motor Corp. advanced 8.6 percent. Mitsui O.S.K. Lines Ltd. led a gain by shipping companies after transport fees for commodities surged the most on record. Sony Corp., which gets a quarter of its sales from the U.S., gained 4 percent after the yen retreated from the strongest level in 13 years against the dollar.
The Nikkei 225 Stock Average climbed 353.18, or 4.3 percent, to 8,589.05 as of 9:48 a.m. in Tokyo, bouncing back from a 5.6 percent loss on Dec. 12. The broader Topix index rose 30.46, or 3.7 percent, to 843.83, with 90 percent of its members advancing.
“All the bad news has been more or less priced in,” Kiyoshi Ishigane, a senior strategist at Mitsubishi UFJ Asset Management Co., which oversees about $61 billion, said in an interview with Bloomberg Television. “What should be noted is that governments globally have prepared economic stimulus plans. I expect these measures to significantly alleviate the slowdown in economies.”
The Bush administration will consider using a bank-bailout fund to finance General Motors Corp. and Chrysler LLC, the White House said in a statement. GM Chief Executive Officer Rick Wagoner spoke with White House Chief of Staff Joshua Bolten and Treasury Secretary Henry Paulson about a short-term plan to keep the automaker solvent, a person familiar with the talks said.
An index that measures confidence among large makers of cars and electronics fell to minus 24 from minus 3, the Bank of Japan’s quarterly Tankan survey showed today. The median estimate of economists surveyed by Bloomberg was for a decline to minus 23. A negative number means pessimists outnumber optimists.
Friday Tumble
The Nikkei dived on Dec. 12, breaking a four-day winning streak, after the U.S. Senate rejected a $14 billion rescue plan for the automakers. Congress’s failure to agree on the plan sent the dollar as low as 88.53 against the Japanese currency on Dec. 12, its weakest level since August 1995.
Honda jumped 6.7 percent to 2,050 yen, while Suzuki, Japan’s second-largest minicar maker, climbed 8.6 percent to 1,194 yen. Market leader Toyota Motor Corp. added 4.2 percent to 2,875 yen.
Stronger Dollar
The yen weakened against the dollar to as much as 91.98 today, boosting the value of overseas sales of Japanese companies when converted back to local currency.
Sony, the world’s second-biggest maker of consumer electronics, rose 4 percent to 1,934 yen, while digital-camera maker Canon Inc. advanced 4.3 percent to 2,700 yen. Nintendo Co., the world’s biggest maker of handheld game players, climbed 3.6 percent to 34,200 yen in Osaka trading.
Mitsui O.S.K., Japan’s second-biggest shipping line, climbed 9.5 percent to 601 yen, while larger rival Nippon Yusen K.K. jumped 6.1 percent to 557 yen. Kawasaki Kisen Kaisha Ltd. gained 8.2 percent to 408 yen. A gauge of shipping companies rose the most among 33 industry groups on the Topix.
The Baltic Dry Index, a measure of shipping costs for commodities, soared 7.5 percent on Dec. 12, extending its advance to a fifth day. The benchmark is down 94 percent from its all-time high in May.
Nikkei futures expiring in March added 3.9 percent to 8,610 in Osaka and gained 4.2 percent to 8,605 in Singapore.
To contact the reporter for this story: Masaki Kondo in Tokyo at mkondo3@bloomberg.net.
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