* Nikkei lifted by hopes for recovery in U.S. demand
* Most autos advance after GM, but Suzuki dips
* Energy, resource shares gain on higher oil
By Shinichi Saoshiro
TOKYO, June 2 (Reuters) - Japan's Nikkei average gained 0.9
percent on Tuesday following U.S. manufacturing data that
reinforced hopes that demand will stabilise, while automakers
such as Toyota and Honda climbed after General Motors' bankruptcy
filing removed some uncertainty from the market.
Nomura Real Estate <3231.T> slid 3.6 percent to 1,605 yen
after the company said it plans to raise 64 billion yen ($660
million) by offering new shares.
"The market is being lifted with the bankruptcy filing of
General Motors seen to have removed a hurdle that blocked
previous advances," said Takahiko Murai, general manager of
equities at Nozomi Securities.
General Motors <GM.N> filed for bankruptcy protection on
Monday as the Obama administration took the first steps to try to
revive a failed icon of American industry by extending
unprecedented federal funding and oversight. []
"Energy and resource-related shares are also being sought, at
least for the short term, on the continuing rise of oil and
commodity prices," Murai said.
Among steelmakers, Nippon Steel <5401.T> rose 3.8 percent to
387 yen and Sumitomo Metal Industries <5405.T> climbed 3.4
percent to 277 yen. The iron and steel subindex <.ISTEL.T> rose
3.1 percent and was one of the biggest gainers among the
subindexes.
Oil and gas developer Inpex <1605.T> gained 1.7 percent to
789,000 yen following crude oil's <CLc1> rise to a seven-month
high on Monday. []
The Reuters-Jeffries CRB index <.CRB>, a global commodities
benchmark, hit a near seven-month high on Monday as markets from
oil to industrial metals and grains rose on signs of economic
recovery.
Sojitz Corp <2768.T> advanced 3.5 percent to 210 yen and
fellow trading house Mitsui <8031.T> gained 1.9 percent to 1,311
yen.
The benchmark Nikkei <> ended morning trade up 86.39
points at 9,764.14, after hitting 9,793.47, its highest since
Oct. 8. The broader Topix <> gained 1 percent to 921.54.
"The equity market is rising in what is still a recession.
The advance is not smooth as investors look to correct any gains
deemed to have gone too far above actual economic conditions, but
the market has also developed firm downside support as well,"
said Kenichi Hirano, operating officer at Tachibana Securities.
Toyota Motor Corp <7203.T> rose 2.1 percent to 3,900 yen and
Honda Motor Co <7267.T> gained 3.1 percent to 2,845 yen. Nissan
Motor Co <7201.T> rose 4.1 percent to 608 yen.
Suzuki Motor Corp <7269.T>, which said on Tuesday it had
exposure of around 72 billion yen ($745 million) to GM affiliates
but no direct exposure to the failed U.S. carmaker, edged up 0.7
percent to 2,125 yen. []
Konica Minolta <4902.T> shed rose 0.1 percent to 1,089 yen
after dropping as much as 3.2 percent after the Nikkei business
daily reported that it aims to shave fixed costs by 33 billion
yen in the business year to next March 31 by spending less in
areas such as personnel and research and development.
[]
The S&P 500 <.SPX> rose to its highest close in seven months
on Monday as reassuring U.S. manufacturing data reinforced hopes
that demand will stabilise. []
Data released on Monday showed that the U.S. manufacturing
sector contracted at a slower rate May for the fifth straight
month. []
Trade was active, with 1.3 billion shares changing hands on
the Tokyo exchange's first section compared to last week's
morning average of 1 billion.
Advancing shares outnumbered declining ones by more than 2 to
1.
($1=96.56 Yen)
(Editing by Michael Watson)
