Bloomberg News

Japanese Stock Futures and Australian Shares Fall on U.S Data

October 02, 2011

Oct. 3 (Bloomberg) -- Japanese stock futures declined and Australian shares fell after U.S. consumer spending slowed as incomes unexpectedly dropped, damping the earnings outlook for Asian exporters.

American depositary receipts Toyota Motor Corp., the world’s biggest carmaker, fell 1.9 percent from the closing share price in Tokyo. Those of Canon Inc., the world’s largest camera-maker, lost 1.5 percent. ADRs of Mitsubishi UFJ Financial Group Inc., Japan’s No. 1 listed lender by market value, fell 2.9 percent. BHP Billiton Ltd., the world’s biggest mining company, fell 1.6 percent in Sydney after the price of oil and metal dropped.

“While a deceleration of the global economy has largely been priced into the markets, we’re not seeing anything to change this,” said Kenichi Hirano, general manager and strategist at Tachibana Securities Co. in Tokyo. “For this reason, we’ll likely see stocks move lower.”

Futures on Japan’s Nikkei 225 Stock Average expiring in December closed at 8,570 in Chicago on Sept. 30, compared with 8,680 in Osaka, Japan. They were bid in the pre-market at 8,580 in Osaka at 8:05 a.m. local time. Australia’s S&P/ASX 200 Index dropped 1.3 percent today. New Zealand’s NZX 50 Index slid 0.7 percent in Wellington.

Futures on the Standard & Poor’s 500 Index were little changed today. In New York, the index fell 2.5 percent on Sept. 30, sending the measure to its biggest quarterly drop since 2008, after reports from China and Germany fueled concerns the global economy is slowing.

Consumer Spending

Consumer spending in the U.S. slowed in August as incomes unexpectedly dropped for the first time in almost two years, forcing households to dip into savings. Purchases rose 0.2 percent after a 0.7 percent increase in July, Commerce Department figures showed on Sept. 30. Incomes decreased 0.1 percent, the first decline since October 2009. Economists had forecast incomes would rise 0.1 percent, according to a Bloomberg survey.

Gains in U.S. payrolls in September were probably too small to reduce joblessness and manufacturing almost stalled as concern mounted that the global recovery was losing momentum, economists said before reports this week.

Oil fell today, extending declines after the worst quarter since 2008. Crude for November slid as much as 1.5 percent, to $78 a barrel in electronic trading in the New York. A measure of primary metals traded in London fell 3.4 percent on Sept. 30, when copper futures declined for the third straight quarter, the longest slump since 2001.

The MSCI Asia Pacific Index declined 18 percent this year through Sept. 30, compared with a 10 percent drop by the S&P 500 and an 18 percent loss by the Stoxx Europe 600 Index. Stocks in the Asian benchmark are valued at 11.5 times estimated earnings on average, compared with 11.4 times for the S&P 500 and 9.5 times for the Stoxx 600.

The Asia Pacific index tumbled 16.2 percent in the third quarter, the biggest drop since 2008, as concern mounted that Europe’s sovereign-debt crisis combined with a slowdown in the U.S. economy may drag the world back into recession.

--Editor: John McCluskey.

To contact the reporters on this story: Anna Kitanaka in Tokyo at akitanaka@bloomberg.net; Toshiro Hasegawa in Tokyo at thasegawa6@bloomberg.net.

To contact the editor responsible for this story: John McCluskey at j.mccluskey@bloomberg.net.


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