May 29 (Bloomberg) -- Japan's stocks jumped the most in almost two months after orders for durable goods in the U.S. unexpectedly rose in April, easing concern an economic slowdown will curb spending in Japan's biggest export market.

Sony Corp., which gets a quarter of its sales from the U.S., sent electronics makers higher, while Canon Inc. jumped the most in a month. Mazda Motor Corp., which exports 80 percent of domestic production, led a gain by carmakers after the yen weakened against the dollar. Wigmaker Aderans Holdings Co. surged after its shareholders rejected the reappointment of executives.

The Nikkei 225 Stock Average climbed 415.03, or 3 percent, to close at 14,124.47, the sharpest gain since April 2. The broader Topix index jumped 31.94, or 2.4 percent, to 1,380.63. All but one of 33 industry groups on the index advanced.

``More and more investors, particularly those overseas, are wanting to increase their weighting in Japanese stocks, and the report on U.S. durable goods spurred buying,'' said Yoji Takeda, who helps manage the equivalent of $1.1 billion in Asian funds at RBC Investment (Asia) Ltd. in Hong Kong.

Orders for goods, excluding cars and planes, rose 2.5 percent in the U.S., the most since July, the Commerce Department said yesterday, while economists had estimated a 0.5 percent decline. The yen weakened against the dollar to as much as 105.31 in New York, a level not seen since May 14, from 103.97 at the close of stock trading in Tokyo yesterday.

`No Recession'

Sony added 3.7 percent to 5,080 yen, while Canon, the world's largest digital-camera maker, rose 3.9 percent to 5,540 yen, the biggest advance since April 25. Mazda, the world's only mass producer of rotary engines, gained 7.3 percent to 513 yen, the highest since Jan. 7, while larger rival Honda Motor Co. climbed 3.1 percent to 3,360 yen. Makers of electronics and cars accounted for a third of the Topix's gain.

``With the report on durable goods, investors concluded there will be no recession in the U.S.,'' said Takanori Shimizu, president of 21st Century Asset Management Co. in Tokyo. ``The U.S. will likely raise interest rates next year, and that will put an end to a stronger yen, giving a tailwind to exporters.''

A 1 yen change against the dollar alters Sony's annual profit by 4 billion yen ($38 million), Canon's by 9.9 billion yen and Honda's by 20 billion yen, according to the companies.

Ousted CEO

Aderans jumped 8.7 percent to 2,020 yen, after falling as much as 1.8 percent. The company's shareholders, including Warren Lichtenstein's Steel Partners Japan Strategic Fund LP, voted against the reappointment of Chief Executive Officer Takayoshi Okamoto and six other executives at a shareholders' meeting today.

Fuji Fire & Marine Insurance Co. jumped 5.5 percent to 327 yen, the sharpest gain since April 28, while Millea Holdings Inc., Japan's biggest publicly traded insurer, climbed 3.6 percent to 4,300 yen. Smaller rival T&D Holdings Inc. added 4.5 percent to 6,940 yen.

The yield on the 10-year government bond jumped to as much as 1.795 percent today, the highest since Aug. 9, as traders bet Japan's central bank will raise rates before yearend. Insurance companies benefit from higher rates as they push up bond yields and increase returns. Japanese government bonds comprise more than a fifth of Millea's assets, according to the company.

Insurers were the second-biggest gainer among industry groups on the Topix, trailing real estate companies.

Nuclear Revival

Japan Steel Works Ltd., which makes components for nuclear power plants, climbed 4.1 percent to 2,140 yen, the highest since it listed on the bourse in June 1951, while Okano Valve MFG Co., another plant-component maker, jumped 3.6 percent to 725 yen. Mitsubishi UFJ Financial Group Inc. lifted its 12-month price estimate on Japan Steel by 41 percent to 3,250 yen and maintained its ``strong outperform'' rating on the stock.

``The company has world-renowned technological prowess its competitors can't match,'' Mitsubishi UFJ analyst Yasushi Mizoue, wrote in a Japanese-language report dated yesterday. Rising crude prices and global warming concerns are prompting countries to adopt nuclear power, Mizoue said.

Oki Electric Industry Co., Japan's first maker of telecommunications equipment, tumbled 10 percent to 196 yen, the sharpest decline since February 2007. The company, today's biggest loser on the MSCI World Index, said yesterday it will sell its chip-making business to Rohm Co. and forecast a loss for this year. Goldman Sachs Group Inc. recommended investors sell the stock.

Nikkei futures expiring in June added 2.9 percent to 14,130 in Osaka and gained 2.7 percent to 14,125 in Singapore.

To contact the reporters for this story: Masaki Kondo in Tokyo at mkondo3@bloomberg.net; Toshiro Hasegawa in Tokyo at thasegawa6@bloomberg.net.

Last Updated: May 29, 2008 03:47 EDT