Stocks Rise for First Time in Three Days on Commodities; Komatsu Advances

Bloomberg Dec 21---Japanese stocks gained for the first time in three days as commodity prices advanced and analysts raised share-price estimates and ratings on U.S. companies, boosting confidence in a global economic recovery.

Komatsu Ltd., the world’s second-biggest maker of construction and mining equipment, gained 1.1 percent. Sony Corp., an electronics maker, increased 1 percent. Mitsubishi Corp., Japan’s biggest commodities trader, and Mitsui & Co., a trading company that counts commodities as its biggest source of profit, both gained 0.5 percent.

“Consensus is forming that the global economy is gradually getting better,” said Kenichi Hirano, general manager and strategist at Tachibana Securities Co. “Growth in the world economy is boosting commodity prices, and surplus money is going into commodities and stocks.”

The Nikkei 225 Stock Average rose 0.6 percent to 10,277.67 as of 9:02 a.m. in Tokyo. The broader Topix index gained 0.4 percent to 902.32, with about eight shares advancing for every five that declined.

The Topix retreated 10 percent from its high this year on April 15 through yesterday 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. Shares in the index were valued at 15.6 times estimated earnings on average yesterday, near a four-month high.

The Standard & Poor’s 500 Index climbed 0.3 percent yesterday in New York as Barclays Plc raised its share-price estimate on Amazon.com Inc. and energy shares rallied. The index is near its closing level on Sept. 12, 2008, the last trading day before the bankruptcy filing of Lehman Brothers Holdings Inc.

Crude oil for January delivery increased 79 cents to settle at $88.81 a barrel in New York yesterday on speculation U.S. economic growth will accelerate next year, bolstering demand in the world’s biggest oil-consuming country.

The London Metal Exchange Index of six metals including copper and aluminum climbed 1.1 percent yesterday, rising for the second day. Gold futures for February delivery rose 0.5 percent yesterday in New York.