Bloomberg News

Japan, Australian Stock Futures Rise on U.S. Manufacturing

July 03, 2011

July 4 (Bloomberg) -- Japan1ese and Australian stock futures rose after a report showed U.S. manufacturing unexpectedly accelerated in June, a sign the industry is rebounding after a shortage of parts and components from Japan slowed production.

American depositary receipts of Toyota Motor Corp., the world’s biggest carmaker by market value, rose 1.2 percent from the closing share price in Tokyo. Those of Sony Corp., which gets about a half of its sales in the U.S. and Europe, gained 1.1 percent. ADRs of BHP Billiton Ltd., the world’s largest mining company, advanced 1.2 percent.

Futures on Japan’s Nikkei 225 Stock Average expiring in September closed at 9,985 in Chicago on July 1, compared with 9,850 in Osaka, Japan. They were bid in the pre-market at 9,960 in Osaka at 8:05 a.m. local time. Futures on Australia’s S&P/ASX 200 Index gained 1.1 percent today. New Zealand’s NZX 50 Index rose 0.4 percent in Wellington

“The increase in the manufacturing index shows U.S. consumption is favorable, and signals the economy will further recover through the end of this year,” said Takero Inaizumi, head of equity research in Tokyo at Mizuho Investors Securities Co. “The investment environment is changing as concerns ease about a U.S. economic slowdown and Greek debt.”

Futures on the Standard & Poor’s 500 Index were little changed today. The index advanced 1.4 percent on July 1 after the Institute for Supply Management’s factory index rose to 55.3 last month from 53.5 in May, the first gain in four months. Economists surveyed by Bloomberg News estimated the index would drop to 52. Figures greater than 50 signal an expansion.

Greece’s Financing

Global stocks also rose on July 1 after Greek Prime Minister George Papandreou won approval of two bills to authorize a 78 billion-euro ($113 billion) package of budget cuts and asset sales, a key to receiving further international financial aid.

Also, Austrian Finance Ministry official Thomas Wieser said Greece may receive as much as 85 billion euros in new financing, including a contribution from private investors, in a second bailout aimed at stopping the country from defaulting on its debt.

On July 2, the euro rose for the first time in four weeks against the dollar as optimism Greece will solve its sovereign- debt problems increased after lawmakers approved fiscal austerity measures.

The euro gained to as much as 117.61 yen today in Tokyo, its highest level in almost four weeks. A stronger euro boosts the value of European income at Japanese companies when converted into their home currency.

The MSCI Asia Pacific Index lost 1.6 percent this year through July 1, compared with a gain of 6.5 percent by the S&P 500 and a drop of 0.3 percent by the Stoxx Europe 600 Index. Stocks in the Asian benchmark are valued at 13.6 times estimated earnings on average, compared with 13.5 times for the S&P 500 and 11.2 times for the Stoxx 600.

--Editors: John McCluskey, Jason Clenfield.

To contact the reporters on this story: Norie Kuboyama in Tokyo at nkuboyama@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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