Nikkei rises; autos gain with GM uncertainty removed

* 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. [ID:nN01398575]

"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. [O/R]

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 .N225 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.