Isuzu Advances After Morgan Stanley Raises Rating

Isuzu Motors Ltd., Japan's biggest truckmaker by sales, rose most in about three months after Morgan Stanley raised its rating because higher demand in emerging markets may help earnings recover.

The stock surged 12 percent to 155 yen at the 3 p.m. close on the Tokyo Stock Exchange. Morgan Stanley raised its recommendation to "overweight" from "equal-weight."

Isuzu, which probably had its first annual loss in six years last fiscal year, may return to profit next fiscal year, the brokerage said. Truck demand in China, Indonesia and other emerging markets has been stronger than Morgan Stanley's expectation, it said.

Isuzu may report a net loss of 15 billion yen ($149 million) for the year ended March 31, compared with an earlier estimate of a 40 billion yen profit, it said in February. The truckmaker has scrapped the expansion of pick-up truck production in Thailand and delayed a plan to build heavy duty trucks in Russia as the worldwide recession sapped vehicle demand.

Other automakers also advanced. Nissan Motor Co., Japan's third-largest carmaker, jumped 4.9 percent to 511 yen, the highest level since Oct. 30. Nomura Securities Co. raised its rating on Nissan to "buy" from "neutral."

Mazda Motor Corp., a Ford Motor Co. affiliate, gained 3.2 percent. Fuji Heavy Industries Ltd., the maker of Subaru brand cars, rose 5.5 percent.

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