Japanese stock futures were little changed as U.S. companies reported better-than-expected earnings, while economic reports missed estimates and the yen rose to a six-week high against the dollar. Australian stock futures rose after commodity prices gained.
American depositary receipts of carmaker Toyota Motor Corp. (7203), which depends on North America for a quarter of its sales, were little changed from the closing share price in Tokyo. Those of Woodside Petroleum Ltd. (WPL), Australia’s second- biggest oil and gas producer, added 0.2 percent after oil advanced. Shares of Kyowa Hakko Kirin Co. may be active in Tokyo after the drugmaker raised its profit forecast.
Futures on Japan’s Nikkei 225 Stock Average (NKY) expiring in September closed at 8,800 in Chicago yesterday, compared with 8,790 in Osaka. They were bid in the pre-market at 8,790 in Osaka at 8:05 a.m. Futures on Australia’s S&P/ASX 200 Index (CRY) climbed 0.1 percent. New Zealand’s NZX 50 Index added 0.2 percent in Wellington.
“The shape of recovery is still uncertain,” said Prasad Patkar, who helps manage about $1 billion at Platypus Asset Management Ltd. in Sydney. “Equity investors need to be patient in any case, but more so at the present time. Valuations are low, which means dividend yields are reasonable.”
Futures on the Standard & Poor’s 500 Index (SPXL1) fell 0.1 percent today. The gauge added 0.3 percent in New York yesterday after International Business Machines Corp., the biggest computer- services provider, and EBay Inc. (EBAY:US), the largest Internet marketplace, beat profit forecasts.
Gains in stocks may be limited after U.S. existing home sales unexpectedly fell and manufacturing in the Philadelphia region contracted for a third month.
The yen reached 78.43 per dollar yesterday, the highest since June 5. A stronger yen cuts the value of overseas income at Japanese exporters when repatriated.
The London Metal Exchange Index of prices for six industrial metals including copper and aluminum rose 1.3 percent yesterday. The Thomson Reuters/Jefferies CRB Index of raw materials gained 0.2 percent.
Crude for August delivery increased 3.1 percent to settle at $92.66 a barrel on the New York Mercantile Exchange.
The MSCI Asia Pacific Index (MXAP) gained 3.2 percent this year through yesterday, compared with a 9.5 percent increase by the S&P 500 and a 7.1 percent advance by the Stoxx Europe 600 Index. Stocks in the Asian benchmark are valued at 11.9 times estimated earnings on average, compared with 13.3 for the S&P 500 and 11 for the Stoxx 600.
The Bloomberg China-US Equity Index of the most-traded Chinese shares in the U.S. gained 2.3 percent to 86.65 yesterday in New York, snapping a three-day slump.
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