Japanese Stocks Rise for First Time in Four Days on U.S. Data; Canon Gains

Japanese stocks rose for the first time in four days after U.S. demand for capital goods increased more than forecast, easing concern the economic recovery is faltering.

Canon Inc., a camera maker that gets 28 percent of its sales in the Americas, advanced 1.7 percent. Komatsu Ltd., the world’s second-biggest maker of construction equipment, climbed 0.9 percent. Mitsubishi Corp., Japan’s largest commodities trader, gained 1.7 percent as metal and oil prices increased.

“It’s positive for the whole global economy that demand for capital investment in the private sector is strong,” said Tomochika Kitaoka, a senior strategist at Mizuho Securities Co. in Tokyo. “Demand should rise further. Capital investment is still at 80 percent of the peak.”

The Nikkei 225 Stock Average rose 0.8 percent to 9,547.44 as of 9:03 a.m. in Tokyo. The broader Topix index climbed 0.5 percent to 842.78.

Futures on the Standard & Poor’s 500 Index gained 0.4 percent. The index surged 2.1 percent in New York on Sept. 24 to the highest close since May. Orders for U.S. capital equipment rebounded 4.1 percent in August from a 5.3 percent decline in July, figures from the Commerce Department showed on Sept. 24 in Washington. The median forecasts of 11 economists surveyed by Bloomberg was for an increase of 3 percent.

The Topix has declined 7.2 percent in 2010, compared with gains of 3 percent by the S&P 500 and 4 percent by the Stoxx Europe 600 Index. Stocks in the Japanese benchmark are valued at 15 times estimated earnings on average, compared with 13.8 times for the S&P and 12 times for the Stoxx.

The London Metal Exchange Index of prices for six industrial metals including copper and aluminum climbed 0.7 percent on Sept. 24 to its highest level since April, and crude oil for November delivery rose 1.7 percent to $76.49 a barrel in New York, the biggest increase in two weeks.