Asian stock futures rose, indicating the regional benchmark gauge will pare a second month of losses, after signs the U.S. economy is improving and amid assurances on stimulus efforts from the Federal Reserve.
American Depositary Receipts of Toyota Motor Corp., the world’s largest carmaker, advanced 1.5 percent as the yen fell against the dollar, boosting the earnings outlook for Japanese exporters. ADRs of Cnooc Ltd., China’s biggest offshore oil producer, gained 0.3 percent from the close in Hong Kong and those of Woodside Petroleum Ltd., Australia’s second-largest oil producer, added 0.8 percent as crude climbed for a fourth day.
Futures on Japan’s Nikkei 225 Stock Average (NKY) expiring in September closed at 13,395 in Chicago, up from 13,270 at the close in Osaka, Japan. They were bid in the pre-market at 13,370 in Osaka at 8:05 a.m. local time. Futures Australia’s S&P/ASX 200 Index advanced 0.5 percent and New Zealand’s NZX 50 Index rose 0.5 percent. Futures on Hong Kong’s Hang Seng Index gained 0.7 percent. Today is the final trading day of the quarter.
“The Fed has moved to soothe markets and that has leveled things out,” James Lindsay, who helps oversee about $23 billion as a fund manager in Auckland at Tyndall Investment Management Ltd., said by telephone. “There’s been some relatively OK economic data, too, so that helps. Emerging markets and Asian markets will do pretty well. China trying to stabilize interest rates is also a driver.”
Global equities have lost more than $3 trillion this month as the Fed said it may pare bond purchases and investors speculated that rising Chinese funding costs will curb growth in Asia’s largest economy.
Futures on the Standard & Poor’s 500 Index (SPX) were little changed. The gauge yesterday advanced 0.6 percent, completing its biggest three-day rally since January.
Consumer spending in the U.S. rebounded in May following the largest drop in more than three years. Household purchases, which account for about 70 percent of the economy, rose 0.3 percent after a 0.3 percent decline the prior month, Commerce Department figures showed yesterday in Washington. Incomes advanced 0.5 percent, more than projected.
More Americans signed contracts in May to buy previously owned homes than at any time in more than six years. Claims for unemployment benefits decreased by 9,000 to 346,000 last week, indicating employers are slowing the pace of firings.
Fed Bank of New York President William C. Dudley said in New York yesterday that the central bank may prolong its asset-purchase program if the economy’s performance fails to meet its forecasts. Fed Governor Jerome Powell said in Washington that asset purchases may be scaled back later this year if growth holds up, and any such trimming depends on economic data rather than the calendar.
The MSCI Asia Pacific Index, the benchmark regional equities gauge, fell 4.9 percent in June through yesterday and is down 5.4 percent this quarter. The measure has declined 0.9 percent in 2013.
That left the gauge trading at 12.5 times average estimated earnings compared with 14.6 for the Standard & Poor’s 500 Index and 12.7 times for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.
Futures contracts on the Hang Seng China Enterprises Index of mainland Chinese companies trading in Hong Kong advanced 1.2 percent. The Bloomberg China-US Equity Index of the most-traded Chinese shares in the U.S. rose 1.2 percent in New York yesterday.
The yen fell 0.2 percent to 98.50 per dollar as of 8:07 a.m. in Tokyo.
To contact the reporters on this story: Adam Haigh in Sydney at firstname.lastname@example.org; Emma O’Brien in New York at email@example.com
To contact the editor responsible for this story: Nick Gentle at firstname.lastname@example.org