March 3 (Bloomberg) -- Japanese stocks rose, with the Nikkei 225 Stock Average gaining for a sixth day, its longest winning streak in more than four years. Energy-related stocks such as Showa Shell Sekiyu K.K. gained after crude oil prices jumped.

``The surge in crude prices is the biggest catalyst for oil- related stocks,'' said Junichi Minami, who helps manage the equivalent of $2.5 billion in assets at Meiji Dresdner Asset Management Co. in Tokyo. ``Their earnings have been supported by higher prices and that will benefit their shares for some time.''

Minami said he favors Nippon Oil Corp., Japan's largest refiner, and TonenGeneral Sekiyu K.K., the local refining unit of Exxon Mobil Corp.

Aiful Corp. led gains by consumer lenders after the Nihon Keizai newspaper said the government will provide guarantees on loans to small businesses by non-bank financial firms.

The Nikkei advanced 42.75, or 0.4 percent, to 11,856.46 at the 3 p.m. close in Tokyo. The average's six-day gain was the longest since Jan. 22, 2001, when it rose for seven days. The Topix index also gained for a sixth day, adding 3.81, or 0.3 percent, to 1189.52, the longest winning streak since Aug. 30, when it advanced for 10 days.

The Nikkei closed at its highest since July 1 while the Topix's close was the highest since June 30. A government report last week showing better-than-expected growth in the U.S. economy, which buys about a third of Japan's exports, triggered the winning streak by the benchmarks.

`Not Overheated'

At home, government reports showing industrial production growth that exceeded some economists' estimates and a surge in household spending have helped drive stocks higher.

``Investors are chasing all sorts of stocks in different industries which is quite healthy,'' said Hiroyuki Nakai, chief strategist at Tokai Tokyo Research Center in Tokyo. ``It doesn't feel that the market is overheated at all''

Some 1.4 trillion yen ($13 billion) in shares included in the Topix traded, 21 percent more than the daily average for the past three months. Eight stocks rose for every seven that fell on the Tokyo Stock Exchange's first section.

Showa Shell, the Japanese refiner half owned by Royal Dutch/Shell Group, advanced 15 yen, or 1.4 percent, to 1,060.

Showa Shell and other refiners benefited from soaring prices of crude oil that rose to a record in New York in October. Prices of Dubai crude oil, a benchmark for Japanese refiners, averaged 25 percent more in 2004 than a year earlier, boosting the value of Showa Shell's inventories and helping it raise fuel prices.

Refining Lags Demand?

The Topix Oil & Coal Index, which includes Showa Shell, has surged 19 percent this year, making it the best performer among the 33 industry groups that make up the Topix.

In Asian trading, crude oil traded near yesterday's $53.05 a barrel close in New York, the highest since Oct. 26, after an inventory report increased concern that shutdowns may leave refiners unable to keep pace with rising demand.

AOC Holdings Inc., a Japanese oil producer and refiner, climbed 23 yen, or 1.4 percent, to 1,641. TonenGeneral Sekiyu added 1 yen, or 0.1 percent, to 1,048.

``Despite the fact that some analysts had expected the commodities boom to peak out early this year, it seems as though demand is quite strong and it's going to continue benefiting raw material stocks,'' said Isaho Nakasho, who manages $40 million in Asia excluding Japan at Fuji Investment Management Co. in Tokyo. ``Globally, commodity stocks are still attractive.''

Loan Business

An industry measure tracking consumer finance companies advanced 1 percent, making it the best performer.

Shares of Aiful jumped 260 yen, or 2.1 percent, to 12,450. Promise Co., the fourth-largest consumer finance company in the nation, advanced 120 yen, or 1.6 percent, to 7,570.

``Aiful has the most loans outstanding among consumer finance companies,'' said Masayoshi Souma, an insurance analyst at Mizuho Investors Securities Co. ``Investors expect loans to businesses will get a boost.''

Elsewhere, Kikkoman Corp., the world's biggest maker of soy sauce, lost 15 yen, or 1.4 percent, to 1,089 after the Nihon Keizai newspaper said the company may miss its own earnings forecast for the current business year because of less-than- expected sales of the staple food seasoning in Japan.

Alpha Corp., an automobile parts maker, dropped 300 yen to 4,490 after UBS AG cut its rating on the stock to ``neutral 2'' from ``Buy 2'' saying the stock price has reached the brokerage's estimate price. The 6.3 percent plunge was the biggest among the stocks on the first section.

Nikkei 225 futures for March delivery gained 0.3 percent 11,840 in Osaka and 0.3 percent to 11,830 Singapore.

Aiful Corp. (8515 JT)
Promise Co. (8574 JT)
Alpha Corp. (3434 JT)
AOC Holdings Inc. (5017 JT)
Kikkoman Corp. (2801 JT)
Showa Shell Sekiyu K.K. (5002 JT)
TonenGeneral Sekiyu K.K. (5007 JT)

To contact the reporter on this story: Tomoko Yamazaki in Tokyo at tyamazaki@bloomberg.net.

Last Updated: March 3, 2005 01:43 EST