Bloomberg News

Japanese Stock Futures Little Changed as China Exports Grow

November 11, 2012

Japanese stock futures were little changed as investors awaited a report on economic expansion in Japan and China’s export growth accelerated last month. Australian shares fell.

American Depositary Receipts of Canon Inc. (7751), a camera maker that gets more than 80 percent of its sales outside Japan, slid 0.4 percent. QBE Insurance Group Ltd. sank 11 percent, the most in nine months, leading declines on Australia’s S&P/ASX 200 Index, after the nation’s largest insurer by market value said it will issue debt due to losses from hurricane Sandy in the U.S. Lynas Corp. (LYC), builder of the world’s largest rare-earth refinery in Malaysia, fell 5.6 percent in Sydney after selling A$150 million ($156 million) of new shares.

Futures on Japan’s Nikkei 225 Stock Average expiring in December closed at 8,750 in Chicago Nov. 9, down from 8,760 in Osaka, Japan, as investors awaited a report on gross domestic product in the world’s third-largest economy. They were bid in the pre-market at 8,760 in Osaka at 8:05 a.m. local time. Australia’s benchmark index lost 0.4 percent today and New Zealand’s NZX 50 Index rose 0.2 percent.

There is “room for equities to rise as further political uncertainties in the U.S. and China are eventually cleared,” said Michael Kurtz, Hong-Kong based chief global equity strategist at Nomura Holdings Inc., Japan’s largest brokerage. “China’s macro data will remain strong into 2013 as policy easing continues.”

Japan will report third-quarter gross domestic product at 8:50 a.m. in Tokyo.

U.S. Futures

Futures on the Standard & Poor’s 500 Index gained 0.1 percent today. The S&P 500 posted its biggest weekly decline since June last week as President Barack Obama’s re-election set up a budget showdown with the Republican-controlled House of Representatives.

China’s central bank Governor Zhou Xiaochuan highlighted the effects on China of what he termed five years of crisis, adding to officials’ cautions on the economic outlook even after a rebound in exports. China’s export growth accelerated in October and the nation’s trade surplus swelled to $32 billion, the highest in almost four years, a customs report showed Nov. 10.

“Overall our macro-economic controls have been successful,” Zhou said at a briefing in Beijing yesterday as part of the Communist Party congress that begins a once-a-decade leadership transition. “But of course, the financial crisis didn’t finish and became a European debt crisis, and therefore we are still continuing to deal with it.”

China Investment

China will increase the quota for a program that allows investors to raise yuan overseas and use the money to buy stocks and bonds on domestic Chinese markets, according to the nation’s securities regulator.

European finance ministers from the 17-member euro group will meet at 5 p.m. in Brussels following a Nov. 8 agreement by Greek lawmakers to make cuts in pensions and benefits. While the ministers are unlikely to finalize an updated aid package for Greece, a European official said Nov. 9 that they’ll find a way to overcome a gap in the country’s financing this week.

The MSCI Asia Pacific (MXAP) Index gained 11 percent through Nov. 9 from this year’s low on June 4 as central banks added stimulus to spur growth and data showed a slowdown in China may be bottoming. The index traded at 13.3 times estimated earnings as of today, compared with 13.3 for the Standard & Poor’s 500 Index and 12.1 for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.

The Thomson Reuters/Jefferies CRB Index of raw materials climbed 0.1 percent on Nov. 9.

The Bloomberg China-US Equity Index of the most-traded Chinese stocks in New York gained 0.3 percent Nov. 9.

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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