The stock's rise comes after the Nikkei newspaper reported the company aims to double its return on equity target to 20%, up from market forecasts of 11% for the year ending in March. The report cites a company executive who asked not to be named.

U.S.-traded shares of Toyota Motor surged Thursday following a report from Nikkei that the carmaker is aiming for a 20% return on equity.

Toyota Motor Corp. shares climbed and were headed for their biggest two-day advance since August on expectations of a higher return-on-equity following a report the Japanese automaker is planning to double its target.

Toyota Motor Corp. surged nearly 9% in Thursday’s premarket trading on the NYSE, driven by reports of the company’s ambitious plan to double its return on equity (ROE) target to 20% by March 2025. If gains hold,