Bloomberg News

Japan Stock Futures Drop After U.S. Jobs Data Disappoints

June 03, 2012

Japanese and Australian stock futures fell after a U.S. payrolls report showed fewer jobs were added to the world’s largest economy than the most pessimistic forecast, adding to concern the global economy is slowing.

American depositary receipts of Sony Corp. (6758), a Japanese exporter of consumer electronics that gets about one fifth of its sales in the U.S., fell 2.3 percent from the closing share price in Tokyo. ADRs of BHP Billiton Ltd. (BHP), the world’s biggest mining company, dropped 0.6 percent as metals prices declined. Those of Woodside Petroleum Ltd. (WPL), Australia’s second-largest oil producer, sank 1.5 percent as crude extended last week’s slump.

Futures on Japan’s Nikkei 225 Stock Average expiring this month closed at 8,255 in Chicago on June 1, down from 8,420 in Osaka, Japan. They were bid in the pre-market at 8,250 in Osaka at 8:05 a.m. local time. Futures on Australia’s S&P/ASX 200 Index dropped 1.4 percent today. New Zealand’s NZX 50 Index slid 1 percent in Wellington.

“The poor U.S. payrolls number should start to deflate investor optimism about U.S. growth that we’ve encountered, leaving few places for investors to hide,” said Gerard Minack, global developed-market strategist at Morgan Stanley in Sydney.

U.S. payrolls climbed by 69,000 last month and the jobless rate rose to 8.2 percent. The Institute for Supply Management’s factory index fell after reaching a 10-month high.

Futures on the Standard & Poor’s 500 Index lost 0.4 percent today. The index slumped 2.5 percent in New York June 1 and the Dow Jones Industrial Average erased its 2012 gains after the jobs report.

Monthly Loss

The MSCI Asia Pacific Index (MXAP) tumbled 10 percent in May, the biggest monthly loss since October 2008, when global markets tumbled in the wake of the collapse of Lehman Brother Holdings Inc. Equities continued declines into June amid concern growth is slowing in China and Europe’s debt crisis is worsening. This dragged valuations on the Asian benchmark down to 11.4 times estimated earnings on average through June 1, compared with 12.2 times for the S&P 500 and 9.8 times for the Stoxx 600.

China’s non-manufacturing industries expanded at the slowest pace in more than a year as export orders declined and weakness in real estate countered strength in retailing and leasing, an official survey indicated.

The purchasing managers’ index fell to 55.2 in May from 56.1 in April, the National Bureau of Statistics and China Federation of Logistics and Purchasing said in statements yesterday in Beijing. That’s the lowest reading since March 2011 when the federation started seasonally adjusting the data.

The Bloomberg China-US Equity Index of the most-traded Chinese companies in the U.S. tumbled 3.4 percent to 87.22 on June 1 in New York, the biggest slump since Nov. 21.

The London Metal Exchange Index of prices for six industrial metals including copper and aluminum dropped 0.8 percent on June 1 and the Thomson Reuters/Jefferies CRB Index of raw materials slumped 1.7 percent.

Oil for July delivery opened 0.3 percent lower in electronic trading on the New York Mercantile Exchange after falling 8.4 percent last week to the lowest in eight months.

To contact the reporter on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.net

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


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