Japan Stocks Climb After Commodities Prices Rise; Inpex Gains By Patrick Rial, 26-02-07

Japanese stocks advanced, led by commodities related companies including Inpex Holdings Inc. and Mitsubishi Corp., after prices for raw materials including oil, gold and silver rose. Nippon Steel Corp. led gains by makers of the alloy on speculation global reorganization will continue in the industry. ``Japanese stocks should continue on a bullish track,'' said Norihiro Fujito, strategist at Mitsubishi UFJ Securities Co. in Tokyo. ``Steelmakers and other groups that could be involved in mergers and acquisitions are going to be picked up this week.'' The Nikkei 225 Stock Average advanced 84.46, or 0.5 percent, to 18,272.88 as of 9:43 a.m. in Tokyo. The broader Topix index rose 5.24, or 0.3 percent, to 1820.20. Nikko Cordial Corp. was set to gain on speculation Citigroup Inc. will increase its stake in an investment-banking joint venture. Mitsubishi Corp., which generates the second-biggest proportion of its sales from crude and industrial fuel, climbed 50 yen, or 1.8 percent, to 2,795. Inpex, Japan's biggest oil explorer, advanced 13,000 yen, or 1.3 percent, to 1.01 million. Sumitomo Metal Mining Co., Japan's largest non-ferrous metal producer, surged 70 yen, or 3.4 percent to 2,135. Crude oil for April delivery rose 0.3 percent to $61.14 a barrel in New York on Feb. 23, the highest close since Dec. 22. Meanwhile, gold futures rose to as high as $691.90 an ounce, the highest since May 18, while silver climbed to as much as $14.66 an ounce, the best since May 12. Trading companies also gained after the Nikkei newspaper reported on Feb. 24 companies are signing agreements to build biofuel plants in Indonesia. Steel Makers Itochu Corp. jumped 41 yen, or 3.6 percent, to 1,192. The trading house is working to build a bioethanol plant with local producer PT Molindo Raya, the Nikkei reported. Sojitz Corp. gained 10 yen, or 1.9 percent, to 548. The company will make a biodiesel production plant that uses palm oil on the island of Borneo, Nikkei said. Nippon Steel, the world's second-biggest maker of the alloy, climbed 15 yen, or 1.8 percent, to 836. JFE Holdings Inc, Japan's second-largest steelmaker, advanced 140 yen, or 1.8 percent, to 7,810. Sumitomo Metal Industries Ltd., the nation's third biggest, rose 8 yen, or 1.3 percent, to 633. Steelmaker stocks climbed last year partly because of speculation a takeover by Mittal Steel Co., the world's largest maker of the alloy, of Arcelor SA would accelerate reorganization in the industry globally. Nikko Cordial, Japan's third-largest brokerage, was untraded, with shares bid 100 yen higher from the Feb. 23 closing price to 1,311. Citigroup, the biggest U.S. bank, may increase its stake in Nikko Citigroup Ltd. to 33.4 percent from 4.9 percent to shore up the Japanese brokerage following an accounting scandal, three people with knowledge of the discussions said. Nintendo Co. declined 350 yen, or 1 percent, to 33,450. Japan's government will sell 67.3 billion yen of shares in Nintendo, the world's largest maker of portable video game players, the company said in a statement. Nikkei futures expiring in March added 0.3 percent to 18,270 in Osaka and rose 0.2 percent to 18,270 in Singapore. [ From Internet]