Bloomberg News

Japan Stock Futures Rise as Weaker Yen Boosts Exporters

June 24, 2012

Japanese and Australian stock futures rose as the dollar strengthened, boosting the earnings outlook for Asian exporters.

American Depositary Receipts of Canon Inc., a Japanese camera maker that gets 80 percent of its revenue overseas, rose 0.8 percent from the closing share price in Tokyo. ADRs of Australia and New Zealand Banking Group Ltd. climbed 0.8 percent. Those of Mitsubishi Corp., Japan’s top commodities trader by market value, added 0.6 percent after oil prices increased. Renesas Electronics Corp. may be active after the Nikkei newspaper reported the Japanese chipmaker may sell 50 billion yen ($622 million) of new shares to KKR & Co.

Futures on Japan’s Nikkei 225 Stock Average expiring in September closed at 8,830 in Chicago on June 22, up from 8,780 in Osaka, Japan. They were bid in the pre-market at 8,820 in Osaka at 8:05 a.m. local time. Futures on Australia’s S&P/ASX 200 Index added 0.3 percent today. New Zealand’s NZX 50 Index gained 0.5 percent in Wellington.

“The yen remains weak, which will support investors to buy blue-chips,” said Kenichi Hirano, general manager and strategist at Tachibana Securities Co. in Tokyo.

The dollar appreciated to as high as 80.52 yen today in Tokyo, compared with 80.45 yen at the close of stock trading on June 22, boosting the value of some overseas income at Japanese companies when repatriated. The Australian dollar, or Aussie, slid 0.3 percent from last week to $1.0039 as of 8:35 a.m. in Sydney.

Futures on the Standard & Poor’s 500 Index slipped 0.3 percent today. The index rose 0.7 percent in New York on June 22 as bank downgrades from Moody’s Investors Service were no worse than the firm had warned. The ratings firm cut Morgan Stanley by two levels rather than a threatened three grades. Banks rose the most among the 24 industry groups in the S&P 500.

Oil Rises

Crude oil for July delivery gained from an eight-month low, rising 2 percent to settle at $79.76 a barrel in New York on June 22.

The Bloomberg China-US 55 Index (CH55BN) of the most-traded Chinese equities in the U.S slipped 1.2 percent to 90.30 in New York last week, led by a 9.7 percent slump in China Unicom (Hong Kong) Ltd.

The MSCI Asia Pacific Index (MXAP) rose 0.2 percent this year through June 22, compared with a 6.2 percent advance 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 1.2 times book value, compared with 2.1 times for the S&P 500 and 1.4 times for the Stoxx 600, according to Bloomberg data. A number below 1 means companies can be bought for less than value of their assets.

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