Bloomberg News

Japan Stock Futures Rise as IMF Crisis Fund Gets Boost

April 22, 2012

Traders work on the floor of the New York Stock Exchange in New York, U.S. Futures on the Standard & Poor’s 500 Index  fell 0.2 percent. Photographer: Michael Nagle/Bloomberg

Traders work on the floor of the New York Stock Exchange in New York, U.S. Futures on the Standard & Poor’s 500 Index fell 0.2 percent. Photographer: Michael Nagle/Bloomberg

Japanese and Australian stock futures rose after more than $430 billion in fresh money was pledged for the International Monetary Fund to protect the global economy from Europe’s sovereign debt crisis.

American depositary receipts of Canon Inc., Japan’s biggest camera maker that gets 31 percent of its sales in Europe, climbed 0.8 percent from the closing share price in Tokyo. Shares of Hitachi Construction Machinery Co (6305), a Japanese machinery maker that counts China as its biggest market, may be active before a report today on China’s manufacturing. ADRs of Woodside Petroleum Ltd. (WPL), Australia’s second-biggest oil and gas producer, rose 0.7 percent after oil gained.

Futures on Japan’s Nikkei 225 Stock Average (NKY) expiring in June closed at 9,600 in Chicago on April 20, up from 9,560 in Osaka, Japan. They were bid in the pre-market at 9,590 in Osaka, at 8:05 a.m. local time. Futures on Australia’s S&P/ASX 200 Index added 0.2 percent today. New Zealand’s NZX 50 Index fell 0.2 percent in Wellington.

The additional money for the IMF “just adds another layer of protection for investors against the existing crisis,” said Prasad Patkar, who helps manage about $1 billion at Platypus Asset Management Ltd. in Sydney. “Asia is more likely to trade out of the Chinese news flow in the short term than anything else.”

G-20 Meeting

Futures on the Standard & Poor’s 500 Index (SPXL1) fell 0.2 percent today. The index gained 0.1 percent in New York on April 20 as profits from companies including Microsoft Corp. and General Electric Co. beat estimates and a report showed German business confidence improved.

The near-doubling of the IMF’s firepower was announced after Group of 20 finance ministers and central bankers met last week in Washington. The G-20 said in a statement that downside risks remain in the world economy and that volatility is high in part because of pressures in Europe.

Crude oil for May delivery rose 78 cents to settle at $103.05 barrel on April 20 on the New York Mercantile Exchange.

Chinese equities in the U.S. extended their longest stretch of gains since February on speculation policy makers will make further cuts to banks’ reserve requirements to bolster lending and spur growth. The Bloomberg China-US Equity Index of the most-traded Chinese shares in the U.S. was little changed at 103.31 in New York on April 20, leaving its third weekly advance at 0.1 percent.

The MSCI Asia Pacific Index (MXAP) gained 9.1 percent this year through last week, compared with a 9.6 percent advance by the S&P 500 and a 5.4 percent increase by the Stoxx Europe 600 Index. Stocks in the Asian benchmark are valued at 12.7 times estimated earnings on average, compared with 13.1 times for the S&P 500 and 10.8 times for the Stoxx 600.

To contact the reporter on this story: Yoshiaki Nohara in Tokyo at ynohara1@bloomberg.net

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


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