Nov. 7 (Bloomberg) -- Japan's Nikkei 225 Stock Average rose on speculation Toyota Motor Corp. will report a record second- quarter profit today and after U.S. indexes had their biggest gain in a month.

``Toyota is a leading company in Japan and is constantly expanding market share globally,'' said Yoji Takeda, who helps manage $900 million in Asian stocks for RBC Investment (Asia) Ltd. in Hong Kong. ``That gives encouragement for other companies that they can do the same kind of thing.''

Oil-related companies including Mitsubishi Corp. and Inpex Holdings Inc. climbed after the price of crude closed above $60 a barrel for the first time since Oct. 27.

The Nikkei added 41.61, or 0.3 percent, to 16,406.37 as of 2:49 p.m. in Tokyo. The broader Topix index rose 2.03, or 0.1 percent, to 1618.74. The indexes paired earlier gains of 0.9 percent and 0.8 percent respectively.

Lenders dropped after China Securities Journal reported Mizuho Financial Group Inc., Japan's No. 2 bank, will not be able to acquire a stake in a Chinese bank and Tokushima Bank Ltd., a regional lender, posted lower-than-forecast profit.

Toyota, the world's largest automaker by value, added 70 yen, or 1 percent, to 7,100. Sony Corp., which will begin selling its PlayStation 3 game console on Nov. 11, jumped 60 yen, or 1.3 percent, to 4,790. Honda Motor Co., Japan's third-largest automaker, climbed 70 yen, or 1.7 percent, to 4,260.

Toyota will probably say profit in the second quarter rose 15 percent to a record 350 billion yen ($2.96 billion), according to the median estimate of five analysts surveyed by Bloomberg News. The company will report earnings after the end of trading today. Toyota is Japan's largest company by market value and by sales.

U.S. Shares Climb

In the U.S., the Dow Jones Industrial Average gained 1 percent to 12,105.55, while the Standard & Poor's 500 Index rose 1.1 percent to 1379.78. Both gauges had their biggest advance since Oct. 4.

Gains were limited in the afternoon after the yen strengthened against the dollar, reducing the value of companies' overseas sales. The yen recently traded at 117.76 to the dollar, up from 118.03 yen at the close of the market yesterday.

The strengthening yen ``might have some negative impact on market sentiment,'' said Soichiro Monji, who helps oversee $47 billion at Daiwa SB Investments Ltd. in Tokyo. ``Investors had high expectations for Toyota, and that's the reason the automotive sector is doing well today in spite of the yen.''

Mitsubishi Corp., which generates the second-biggest proportion of its sales from selling crude and industrial fuel, climbed 5 yen, or 0.2 percent, to 2,225. Inpex, Japan's largest oil explorer, gained 3,000 yen, or 0.3 percent, to 975,000.

Mizuho Drops

Crude oil for December delivery rose 1.5 percent to $60.02 a barrel in New York, the highest close since Oct. 27. The jump came after officials at the Organization of Petroleum Exporting Countries said they may restrict output. The contract recently changed hands at $59.98.

Mizuho, the nation's No. 2 lender, lost 7000 yen, or 0.8 percent, to 895,000. Banco Bilbao Vizcaya Argentaria SA, Spain's second-biggest bank, is the front runner in the bid for a 5 percent stake in China Citic Bank over others including Mizuho, the China Securities Journal reported, citing unidentified Hong Kong media.

Tokushima Bank, a regional lender located on the island of Shikoku, said yesterday on a preliminary basis that profit in the six months ended on Sept. 30 will be 250 million yen, 88 percent lower than its original forecast. Tokushima lost 20 yen, or 2.6 percent, to 755.

Sumitomo Mitsui Financial Group Inc., Japan's third-biggest lender, fell 10,000 yen, or 0.8 percent, to 1.28 million.

To contact the reporter for this story: Patrick Rial in Tokyo at prial@bloomberg.net.

Last Updated: November 7, 2006 00:58 EST