Most Japan Stocks Rise on Stimulus Plan; Orix, Softbank Gain

By Masaki Kondo and Patrick Rial

April 13 (Bloomberg) -- Most Japanese stocks advanced after Prime Minister Taro Aso announced a 15.4 trillion-yen ($153 billion) stimulus plan.

Orix Corp., the nation’s largest non-bank financing company, jumped 3.7 percent, as Aso plans to support financing for businesses. Aiful Corp., Japan’s No. 1 consumer lender by assets, leapt 6.4 percent. Mitsui Engineering & Shipbuilding Co. and mobile-phone carrier Softbank Corp. gained at least 3.2 percent after posting higher-than-forecast profits.

“Compared to previous packages it’s quite well targeted,” Richard Okuno, managing executive director at Rheos Capital Works Inc. in Tokyo, said in an interview with Bloomberg television, referring to Aso’s stimulus plan. “It’s certainly quite a lot of money.”

The Topix index advanced 4.97, or 0.6 percent, to 850.94 as of 10:34 a.m. in Tokyo, with two stocks gaining for each that fell. The Nikkei 225 Stock Average added 12.34, or 0.1 percent, to 8,976.45.

The Nikkei climbed 1.2 percent in 2009 through April 10, compared with a 5.2 percent decline in the Standard & Poor’s 500 Index in the U.S. The Japanese gauge’s constituents traded at equal to their corporate net worth, according to index compiler Nikkei Inc.

On April 10, Aso announced his third stimulus plan since taking office. The proposal includes 3 trillion yen to support corporate financing, 1.9 trillion yen to create jobs and 370 billion yen to subsidize new car purchases.

Orix soared 3.7 percent to 5,060 yen, and Aiful jumped 6.4 percent to 183 yen. A gauge of non-bank financial companies posted the second-steepest jump among 33 industry groups on the Topix, after insurers.

Better Earnings

Mitsui Engineering, Japan’s biggest maker of ship engines, jumped 4.8 percent to 195 yen. Operating profit totaled 26 billion yen on a preliminary basis, compared with its earlier forecast of 23 billion yen, because of cost cuts, the company said on April 10.

Softbank, the nation’s No. 3 mobile-phone operator, climbed 3.2 percent to 1,570 yen. The Tokyo-based company posted about 350 billion yen in operating profit for the year to March 31, it said in a preliminary earnings report on April 10. Softbank had previously projected 340 billion yen in profit.

To contact the reporters for this story: Masaki Kondo in Tokyo at mkondo3@bloomberg.net; Patrick Rial in Tokyo at prial@bloomberg.net.