Bloomberg News

Japanese, Australian Stock Futures Rise on Easing Greek Concern

June 20, 2011

June 21 (Bloomberg) -- Japanese and Australian stock futures rose as concern eased that Greece will default on its debt after Luxembourg’s Jean-Claude Juncker assured investors a solution will be found to the crisis.

American depositary receipts of Canon Inc., the world’s largest camera maker that counts Europe as its biggest market, advanced 0.5 percent from the closing share price in Tokyo. Those of Toyota Motor Corp., the world’s No. 1 carmaker, jumped 1.3 percent after Daiwa Securities Capital Markets Co. raised its rating on the company to “outperform” from “neutral.” ADRs of Australian oil producer BHP Billiton Ltd. climbed 1.5 percent after crude prices increased.

Futures on Japan’s Nikkei 225 Stock Average expiring in September closed at 9,430 in Chicago yesterday, compared with 9,350 in Osaka, Japan. They were bid in the pre-market at 9,410 in Osaka, at 8:05 a.m. local time. Futures on Australia’s S&P/ASX 200 Index gained 0.8 percent today. New Zealand’s NZX 50 Index was little changed in Wellington.

“Greece will be supported by European nations in the end, and it will be able to avoid the worst,” said Kenichi Hirano, general manager and strategist at Tachibana Securities Co. in Tokyo.

Futures on the Standard & Poor’s 500 Index were little changed today. In New York, the index advanced 0.5 percent to 1,278.36 yesterday.

‘Italy Safe’

Juncker, who leads the group of euro-area finance ministers, said he doesn’t believe Italy is in danger amid the euro area’s debt crisis. Private investors will be present in any second rescue package for Greece, Juncker told reporters in Luxembourg yesterday, though he said he doesn’t know if they’ll be “enthusiastic.”

The yen depreciated to 115.07 against the euro, a level not seen since June 16, compared with 114.16 at the close of stock trading in Tokyo yesterday. A weaker yen boosts the value of overseas income at Japanese companies when converted into their home currency.

The MSCI Asia Pacific Index lost 6.4 percent this year through yesterday, compared with a gain of 1.7 percent by the S&P 500 and a drop of 3.6 percent by the Stoxx Europe 600 Index. Stocks in the Asian benchmark are valued at 13.2 times estimated earnings on average, compared with 12.8 times for the S&P 500 and 10.7 times for the Stoxx 600.

Crude oil for July delivery increased 0.3 percent to settle at $93.26 a barrel in New York yesterday.

--Editors: John McCluskey, Jason Clenfield

To contact the reporters on this story: Akiko Ikeda in Tokyo at iakiko@bloomberg.net; Toshiro Hasegawa in Tokyo at thasegawa6@bloomberg.net.

To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net.


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