Japanese Shares Rise on Denso Forecast, MUFJ Buyback Report

Japanese shares climbed, led by auto companies, after Denso Corp. boosted its profit forecast on rising demand in overseas markets such as Europe.

Denso, the nation's largest auto-parts maker, rose by the most in more than six years. Mitsubishi UFJ Financial Group Inc. jumped after the Nikkei newspaper reported the company will spend 150 billion yen ($1.3 billion) to conduct its first share buyback.

``This earnings season is pretty healthy,'' said Jon Easton, who manages about $100 million in Japanese equities at EN Asset Management in Tokyo. ``I think this is a tremendous buying opportunity right now.''

Mitsui & Co., whose profits are the most sensitive to oil prices among trading companies, had the biggest drop since August, leading commodities shares lower.

Sapporo Holdings Ltd. surged the most in more than seven years after the company said it will sell stake in a Tokyo office and shopping complex to Morgan Stanley.

The Nikkei 225 Stock Average rose 86.62, or 0.5 percent, to 16,737.63 at the close of trading in Tokyo, reversing a 0.6 percent drop. The Topix index added 12.86, or 0.8 percent, to 1,620.07. The Nikkei lost 0.3 percent in October and the Topix added 0.2 percent, a second month of gains.

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