Toyota, the world’s second largest carmaker, rose the most since January in Tokyo after saying the weaker yen will allow it to meet its full year earnings forecast. Asian auto and technology stocks climbed after Toyota Motor Corp. beat profit estimates and Lenovo Group Ltd. Increased earnings. Lenovo is the China’s biggest personal computer maker surged in Hong Kong as Chinese and European demand boosted sales. The MSCI Asia Pacific Index eased 0.2 percent to 127.80 in Tokyo, paring a loss of 1.1 percent.

Toyota gained 5.7 percent, to 4,840 yen. The maker of Prius hybrids expects the yen to be weaker over the rest of the year than it predicted in May, helping the company stick to its annual earnings forecast, even after cutting its estimate of vehicle sales by 3.5 percent. Profit fell 28 percent to 353.7 billion yen ($3.23 billion) in the three months ended June 30, better than the 329 billion yen median estimate by five analysts compiled.

Lenovo added 4.4 percent to HK$5.47, the biggest increase since May 19. Profit in the three months ended June 30 climbed 65 percent to $110.6 million. The fifth straight increase in quarterly profit followed stronger demand in Europe and China, helping to compensate for lower revenue from the U.S.

Mitsubishi UFJ, Japan’s No. 1 bank by market value fell 3.6 percent to 838 yen and a drop of 9.5 percent for the week. Lending growth at Japanese banks stalled in July after accelerating for six months, as the nation’s economy moved closer to a recession, making small companies more cautious about borrowing.

The biggest in the U.S. auto market, the General Motors Corp. and Toyota Motor Corp predicted that sales would fall this year to their lowest levels.  Cars and light trucks sales slid 18.3 percent because of high gas price, customer’s confidence is shrunk and the supplies are insufficient of the popular small and fuel efficient model.  Selling in June is translated to be 13.6 million trucks and cars on an annual basis, this is the weakest level in fifteen years, past month’s sales reflect a difficult situation for customers and it’s is going to persist for months to come.

According to Autodata Corp. the decline was exacerbated by the fact that there were three fewer selling days last month than in June 2007, the difference in June sales were down 8.1 percent.  The GM shares rose 2 percent after the U.S. automaker report a better performance, GM’s vehicle sales fell 18.2 percent last month.  Mean while Ford’s sales tumbled to 27.8 percent and Chrysler LLC’s sank to 35.9 percent.  Toyota had been expected to pass GM in June but reports say a 21.4 percent is drop in sales due to shortage of supplies of its fuel-efficient models.

With gas are now topping $4 per gallon, an acceleration in the shift in demand not only to smaller vehicles but also to a smaller engine within a model line.  Crossovers have benefited from demand for more fuel-efficient vehicles, but sales fell in June because prospective buyers.