July 16 (Bloomberg) -- Japanese stocks rose after commodities prices gained and China’s growth accelerated. Banks weighed on the market after U.S.-based CIT Group Inc. said authorities may not rescue it.

Bridgestone Corp., the world’s top tiremaker, jumped 5.8 percent after Mizuho Securities Co. more than doubled its earnings estimate. Mitsubishi Corp., which gets more than half its sales from commodities, climbed 4.6 percent. Komatsu Ltd., which counts China as its fastest growing market, advanced 2.8 percent. Mitsubishi UFJ Financial Group Inc. fell 0.9 percent, erasing an early 3 percent gain.

The Nikkei 225 Stock Average rose 74.91, or 0.8 percent, to close at 9,344.16 in Tokyo after climbing as much as 2.4 percent. The broader Topix index added 5.88, or 0.7 percent, to 872.25.

“Demand is recovering faster than companies have forecast,” said Hiroshi Sato, chief investment officer of GCSAM Co., a fund-management company in Tokyo. “Along with drastic cost cuts, I’m expecting big surprises when major companies start reporting earnings.”

The Topix dipped 0.03 percent over four days through today, headed for its third-straight weekly loss this month. Companies on the gauge trade at 1.1 times their corporate net worth, lower than the 1.9 times for the U.S. Standard & Poor’s 500 Index.

Bridgestone, the world’s largest tiremaker, soared 5.8 percent to 1,562 yen, sending its peers to the biggest gain among the Topix’s 33 industry groups. Takao Oshitari, a Mizuho analyst, lifted the stock to “strong buy” from “buy” and boosted his 2010 operating-profit estimate by 2.5 times because of an increase in demand. UBS AG also raised its rating on the stock to “buy” from “neutral.”

Metals, Oil

In New York, the S&P 500 climbed 3 percent after Federal Reserve figures showed industrial production shrank 0.4 percent in June, the smallest decline in eight months. The New York Fed’s Empire Index rose to minus 0.6 this month, the highest level since April 2008.

Optimism the expansion of manufacturing will boost demand for materials lifted prices for metals and oil. A gauge of six metals in London jumped 3.6 percent yesterday, extending this week’s gain to 7.2 percent. Crude oil added 3.4 percent, the steepest climb since June 23.

Mitsubishi, Japan’s largest trading house by value, added 4.6 percent to 1,695 yen. Sumitomo Metal Mining Co., the biggest nickel producer domestically, gained 2.7 percent to 1,278 yen. Inpex Corp., the nation’s No. 1 oil and gas explorer, rose 1.7 percent to 710,000 yen.

China’s Economy

Komatsu, the world’s second-biggest maker of earth-moving equipment, jumped 2.8 percent to 1,419 yen. Fanuc Ltd., a robot maker that gets 30 percent of its sales in Asia, added 2.1 percent to 7,390 yen.

China’s economy expanded 7.9 percent in the second quarter, the statistics bureau said today, accelerating from its slowest growth in almost a decade.

Canon Inc., the world’s biggest digital-camera maker, jumped 1.7 percent to 3,080 yen. The company will likely report about 30 billion yen ($319 million) in operating profit for the three months to June, a 50 percent increase from the previous quarter, the Nikkei newspaper reported today. Demand for cameras grew, while that for office equipment remained weak, the newspaper said.

Kawasaki Kisen Kaisha Ltd., Japan’s third-biggest shipping line, added 3.5 percent. The Baltic Dry Index, a measure of shipping costs for commodities, surged 7.3 percent in London yesterday, the sharpest advance since June 2.

Banks Retreat

Market leader Nippon Yusen K.K. inched up 0.3 percent and closest rival Mitsui O.S.K. Lines Ltd. advanced 1.9 percent. Nippon Yusen may post a pretax loss of about 20 billion yen for the quarter ended June 30, while Mitsui O.S.K. may report a loss of as much as 10 billion yen, the Nikkei English News said.

Mitsubishi UFJ, Japan’s largest publicly traded bank, slipped 0.9 percent, while Shinsei Bank Ltd. fell 3.1 percent. CIT, a New York-based commercial lender, said in a statement that talks with regulators broke off and there’s “no appreciable likelihood” of a government bailout.

Nikkei futures expiring in September added 0.4 percent to 9,330 in Osaka and gained 0.6 percent to 9,335 in Singapore.

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

Last Updated: July 16, 2009 03:04 EDT