Bloomberg News

Japanese Stock Futures Fall as Euro Near 11-Year Low Against Yen

January 09, 2012

Jan. 10 (Bloomberg) -- Japanese stock futures dropped as the euro traded near an 11-year low against the yen and a report showed German industrial production fell, adding to signs the debt crisis may drag Europe into a recession.

American depositary receipts of Canon Inc., Japan’s biggest camera maker that generates about one-third of its revenue in Europe, fell 0.5 percent from the closing share price in Tokyo. Those of Mitsubishi Corp., a Japanese trading company, slid 0.9 percent after oil dropped. Pacific Brands Ltd. led Australian stocks higher after the nation’s biggest clothing maker said it was discussing a buyout offer by New York-based KKR & Co.

Futures on Japan’s Nikkei 225 Stock Average expiring in March were bid in the pre-market at 8,360 in Osaka at 8:05 a.m. local time compared with 8,390 in Osaka on Jan. 6. Japan’s stock market was closed for a public holiday yesterday. Australia’s S&P/ASX 200 Index rose 0.7 percent today. New Zealand’s NZX 50 Index lost 0.3 percent in Wellington.

“The euro is likely to be in a downtrend while Europe relies on lending by the European Central Bank” to shore up its economy, said Koichi Kurose, chief economist in Tokyo at Resona Bank Ltd., which oversees the equivalent of $68 billion. “That will weigh on Japanese equities.”

Futures on the Standard & Poor’s 500 Index were little changed today. The index added 0.2 percent in New York yesterday as European leaders discussed shoring up the region’s currency and investors awaited the start of the fourth-quarter earnings season.

German Production

German industrial production fell 0.6 percent in November after adding 0.8 percent in October, a report showed. The euro touched 97.28 yen yesterday, the lowest level since December 2000.

The MSCI Asia Pacific Index gained 0.7 percent this year through yesterday, compared with a 1.8 percent increase by the S&P 500 and a 0.8 percent gain by the Stoxx Europe 600 Index. Stocks in the Asian benchmark are valued at 12 times estimated earnings on average, compared with 12.2 times for the S&P 500 and 9.8 times for the Stoxx 600.

Chinese stocks traded in the U.S. rose, led by Yanzhou Coal Mining Co. and Mindray Medical International Ltd., on speculation looser lending conditions may boost company earnings. The Bloomberg China-US 55 Index advanced 1.2 percent to 99.75 as trading closed in New York, taking its increase this year to 4.1 percent.

Oil for February delivery fell 25 cents to $101.31 a barrel on the New York Mercantile Exchange, the lowest settlement of 2012.

--Editor: John McCluskey

To contact the reporters on this story: Yoshiaki Nohara in Tokyo at ynohara1@bloomberg.net; Masaaki Iwamoto in Tokyo at miwamoto4@bloomberg.net

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


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