The News

Jan. 5 (Bloomberg) -- Japanese stocks rose for a second day, led by commodities companies after U.S. manufacturing climbed more than estimated and prices of oil and metals advanced. Equities pared gains in the afternoon as the yen strengthened.

Mitsubishi Corp., Japan’s biggest trading company, climbed 2.5 percent, and Mitsui & Co., the second-largest, added 2.9 percent. Inpex Corp., the country’s No. 1 oil explorer, gained 1.8 percent. A gauge of U.S. manufacturing in December climbed to its highest level in more than three years. Toyota Motor Corp., the world’s biggest carmaker and which gets 31 percent of its revenue in North America, fell the most since November after the yen surged to the highest level in a week against the dollar.

“Contrary to expectations, America is on its way to a well-grounded recovery,” said Akio Yoshino, chief economist in Tokyo at Societe Generale Asset Management (Japan) Co., which manages the equivalent of $14 billion. “It’s a positive surprise, reflected in the market today.”

Read more: Japanese Stocks Advance on Commodity Prices, U.S. Manufacturing