Japanese stocks gained to more than a seven-month high, as expansion in U.S. manufacturing boosted confidence in a global economic recovery and commodity prices advanced. Mitsubishi Corp., Japan’s biggest commodities trader, jumped 4.2 percent and Inpex Corp., the nation’s largest oil and gas explorer, increased 4 percent as oil and copper prices strengthened. Mizuho Financial Group Inc., Japan’s third-largest bank, climbed 2 percent. Kyocera Corp., an electronics-equipment maker that earns a third of its revenue from the U.S. and Europe, gained 2.7 percent. “The U.S. data were good,” said Koichi Kurose, chief strategist in Tokyo at Resona Bank Ltd., which manages about $57 billion in assets. “Investors are looking on the bright side, and there is support from excess liquidity.” The Nikkei 225 rose 1.7 percent to 10,398.10 as of the close in Tokyo. The broader Topix advanced 1.5 percent to 911.80, with about 13 times as many shares climbing as falling. Both gauges rose to the highest level since May 2010. Japan’s government has pledged to bolster growth with a 35 trillion yen ($427 billion) stimulus including purchases of exchange-traded funds and real estate investment trusts. The Topix retreated 10 percent at the close on Dec. 30 from its high last year on April 15 as Europe’s debt crisis, China’s steps to curb property prices and concern about U.S. economic growth damped confidence in a global recovery. Stocks in the Topix were valued at 15.6 times estimated earnings on average as of the last close, compared with 14.9 times for the Standard & Poor’s 500 Index and 11 times for the Stoxx Europe 600 Index. Commodity Stocks Crude oil for February delivery increased 17 cents to $91.55 a barrel in New York yesterday, the highest settlement price since Oct. 3, 2008. Copper futures for March delivery climbed as much as 5.1 cents to a record $4.498 yesterday. The London Metal Exchange Index of six metals including copper and aluminum was closed for a holiday. The U.S.-based Institute for Supply Management’s manufacturing index rose to 57 in December from 56.6 in November. A reading greater than 50 indicates expansion. The S&P 500 Index gained 1.1 percent yesterday in New York, and all 10 industry groups advanced after the ISM report showed U.S. manufacturing expanded in December at the fastest pace in seven months and construction spending in November rose for a third month. European manufacturing expanded more than initially estimated in December, London-based Markit Economics said. “The soundness of the economic figures may ease investors’ recent worries,” said Kazuhiro Takahashi, a general manager at Tokyo-based Daiwa Securities Capital Markets Co. “Short-term funds are flowing into commodities and stocks.” To contact the reporter on this story: Norie Kuboyama in Tokyo at nkuboyama@bloomberg.net. To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net.

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