May 20 (Bloomberg) -- Japanese exporter stocks rose, led by Toyota Motor Corp. and Fanuc Ltd., after a gain in U.S. shares and a more-than-expected drop in jobless claims bolstered optimism growth in the world's largest economy will be sustained.

``Gains in U.S. stocks help to increase confidence among investors in the economic outlook there, which suggests Japanese exporters' shares will get a lift,'' said Yutaka Miura, a manager at Shinko Securities Co. in Tokyo.

Japan said exports are showing signs of improvement in its monthly assessment of the world's second-largest economy.

The Topix index rose 1.64, or 0.1 percent, to 1133.06 as of 10:38 a.m. in Tokyo. The Nikkei 225 Stock Average fell 10.19, or 0.1 percent, to 11,066.97, after earlier rising as much as 0.3 percent. Credit Saison Co., Japan's No. 2 credit-card company, fell after saying profit growth will slow this year after jumping 42 percent last year. Nomura Securities Co. cut its rating on the stock to ``neutral'' from ``buy.''

Companies that rely on sales from the U.S., Japan's second largest trading partner, led gains for a second day.

Toyota, the world's largest automaker by value, rose 40 yen, or 1 percent, to 3,920. Toyota gets as much as 70 percent of its operating profit from North America, according to Koji Endo, an analyst at Credit Suisse First Boston.

Fanuc, the world's largest maker of industrial robots, rose 80 yen, or 1.2 percent, to 6,580. The company generated about 45 percent of its sales outside of Japan last year.

Improving Sentiment

The number of workers filing new jobless claims last week fell by 20,000 to 321,000, the U.S. Labor Department said, evidence the labor market is strengthening. Economists in a Bloomberg News survey expected claims of 330,000.

Toyota, and its rivals Nissan Motor Co. and Honda Motor Co. each said that they will further increase production in North America, Europe and Asia as they win market share.

About two-thirds of Japanese automakers' cars sold in the U.S., the world's largest automobile market, are locally made, according to the Japan Automobile Manufactures Association.

In the U.S., stocks rose for a fourth day, extending their biggest rally in six months. The Standard & Poor's 500 Index added 0.5 percent. The Nasdaq Composite Index rose 0.6 percent.

The gains in U.S. shares followed a U.S. consumer-price report this week suggesting the economy can maintain its pace of growth without igniting inflation.

``Sentiment for the U.S. economy seems to be improving, so that should help to give stocks a lift,'' said Koichi Seki, an equity manager at Chuo Securities Co. in Tokyo.

Credit Saison

Japan's government raised its assessment of exports to ``flat'' from ``weakening'' in its report for May. Meanwhile, a government report earlier this week showed that the economy grew at a 5.3 percent annual pace in the first three months of 2005, twice as fast as economists had forecast.

Credit Saison dropped 90 yen, or 2.5 percent, to 3,540. The stock was the biggest decliner in the Nikkei.

Profit growth will slow to 6.9 percent to 34 billion yen ($316.1 million) this business year after jumping 42 percent last year, the company said yesterday. Credit Saison has fallen 12 percent since reaching a high this year of March 22.

Shinichi Iimura, an analyst at Nomura, lowered his rating on Credit Saison on concern that delays in integrating its operations with Mizuho Financial Group Inc.'s UC Card unit will cause it to lose customers. Credit Saison last December agreed to buy a stake of as much as 34 percent in UC Card.

Shares of materials suppliers such as JFE Holdings Inc. dropped after a slump in prices for metals including copper and aluminum raised concern that profit growth will slow.

JFE Holdings, Japan's No. 2 steelmaker, dropped 15 yen, or 0.5 percent, to 2,850. Mitsubishi Materials Corp., the non-ferrous metal maker, lost 2 yen, or 0.8 percent, to 237.

To contact the reporter for this story: Michael Tsang in Tokyo at mtsang1@bloomberg.net.

Last Updated: May 19, 2005 21:43 EDT