Nov. 4 (Bloomberg) -- Japan’s benchmark stock indexes rose, led by commodity producers after gold and oil prices climbed, and as companies from carmakers to retailers reported higher earnings or forecasts.

Sumitomo Metal Mining Co., the country’s largest gold producer, gained 2.6 percent as the metal increased to a record yesterday. Nissan Motor Co., Japan’s third-biggest carmaker, added 1.7 percent after U.S. sales increased in October. Fast Retailing Co., the operator of the Uniqlo clothing chain, added 4.4 percent after its domestic sales rose. Mitsubishi UFJ Financial Group Inc. fell 1.8 percent, leading banks lower.

“Company earnings are improving faster than the global economy,” said Junichi Misawa, head of the equity investment division at Tokyo-based STB Asset Management Co., which manages the equivalent of $14 billion. “This scenario still remains intact, though valuations aren’t enticing.”

The Nikkei 225 Stock Average gained 0.4 percent to 9,844.31 at the close in Tokyo. The broader Topix index added 0.1 percent to 881.27, reversing a drop in the last two minutes of trading. About eight stocks declined for seven that advanced. Shares in the Topix are valued at 37 times estimated earnings, compared with 20.1 at the start of 2009.

Sumitomo Metal Mining gained 2.6 percent to 1,476 yen. Mitsubishi Materials Corp., a gold producer, gained 3.8 percent to 245 yen. The industry group that includes the two companies climbed the most among the Topix’s 33 sectors. Marubeni Corp. advanced 3.2 percent to 454 yen after the trading company said it and a partner discovered oil in the North Sea.

Gold, Oil Advance

Gold increased 2.4 percent to $1,088.50 an ounce yesterday in New York, a record price, after India’s central bank purchased 200 metric tons of the metal from the International Monetary Fund. Crude oil for December delivery rose 1.8 percent to $79.57 a barrel.

Automakers contributed the most to the Topix’s gain among its 33 groups. Nissan added 1.7 percent to 661 yen after its October U.S. sales increased 5.6 percent from last year. Toyota Motor Corp., the world’s biggest carmaker, gained 1.1 percent to 3,610 yen after U.S. sales rose in October, and the Yomiuri newspaper said the company raised its global production plan for this year. Honda Motor Co. advanced 1.4 percent to 2,860 yen.

Results or forecasts also boosted stocks. Fast Retailing Co., Japan’s largest clothing retailer, added 4.4 percent to 15,790 yen after domestic sales at its Uniqlo chain surged 36 percent in October, the most in almost nine years, on higher demand for its fleece and thermal wear.

Earnings, Forecasts

Fujikura Ltd. climbed 5.3 percent to 454 yen after the electric-cable maker reversed its full-year forecast to net income of 4 billion yen from a net loss of 4 billion yen, citing higher-than-expected sales and lower costs.

Japan Steel Works Ltd. jumped 10 percent to 1,096 yen, the steepest gain since Nov. 5 last year, after the maker of forged- steel products lifted its full-year net income outlook by 6.4 percent, citing cost cuts and increased production in its energy division. Shigeki Okazaki, an analyst at Nomura Holdings Inc., raised his rating on the shares to “buy” from “neutral.”

Banks were the biggest drag on the Topix among its 33 groups. Mitsubishi UFJ, Japan’s largest publicly traded bank, declined 1.8 percent to 480 yen and Mizuho Financial Group Inc. dropped 1.6 percent to 180 yen. Sumitomo Trust & Banking Co. sank 2.9 percent to 471 yen, and Shinsei Bank Ltd. lost 4 percent to 119 yen.

Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc will receive 31.3 billion pounds ($51 billion) in a second bailout from the U.K. taxpayer as the two banks agreed to cap bonuses.

Semiconductor Stocks Fall

“Confidence in the financial industry has not yet been restored,” said Masaru Hamasaki, a strategist at Tokyo-based Toyota Asset Management Co., which oversees the equivalent of $14 billion.

Tokyo Electron Ltd., the world’s second-largest maker of semiconductor equipment, retreated 5.1 percent to 4,850 yen, the lowest close since Aug. 3. Advantest Corp., the world’s biggest maker of memory-chip testers, sank 1.3 percent to 1,971 yen. Sumco Corp., the world’s No. 2 maker of silicon wafers, dropped 3.7 percent to 1,648 yen. Takaaki Muramatsu, an analyst at UBS, cut the investment rating on Sumco to “neutral” from “buy.”

Morgan Stanley lowered its rating yesterday on three U.S. semiconductor producers, including Intel Corp., saying the industry is “in the final innings of the semi cycle.

To contact the reporter for this story: Kana Nishizawa in Tokyo at knishizawa5@bloomberg.net; Masaki Kondo in Tokyo at mkondo3@bloomberg.net

Last Updated: November 4, 2009 02:50 EST